Modi, Carney revive trade pact talks: All you need to know about the India–Canada CEPA plan

• India and Canada agree to restart negotiations for a Comprehensive Economic Partnership Agreement (CEPA).

• Leaders set a target to increase bilateral trade to USD 50 billion by 2030.

• Talks resume after a diplomatic freeze following tensions in 2023.

• Cooperation to expand across trade, investment, defence, space, technology and civil nuclear sectors.

India and Canada have agreed to resume negotiations for a long-pending Free Trade Agreement, with leaders setting a goal of raising two-way trade to USD 50 billion by 2030.

The decision marks a significant turnaround in bilateral relations after talks were paused in 2023.

The development was confirmed across multiple engagements, including Commerce and Industry Minister Piyush Goyal’s statement on Monday and high-level discussions between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on Sunday at the G20 Summit in Johannesburg.

Why CEPA talks are being revived

Goyal said an FTA or Comprehensive Economic Partnership Agreement (CEPA) carries “many strategic elements” and reflects trust between the two countries. He added that such a pact would give confidence to investors and businesses on both sides.

According to a statement from the Prime Minister’s Office, Modi and Carney agreed to begin negotiations on a “high-ambition” CEPA aimed at doubling bilateral trade to USD 50 billion by 2030. Carney posted on X: “Prime Minister @narendramodi and I met at the G20 Summit today, and launched negotiations for a trade deal that could more than double our trade to more than (C) $70 billion.”

Carney said India, as the world’s fifth-largest economy, offers “big new opportunities for Canadian workers and businesses.”

Bilateral context: Talks paused in 2023, ties now thawing

Negotiations for a broad trade pact were paused in 2023 after diplomatic tensions emerged when Ottawa alleged an Indian link to the killing of a Canadian Sikh separatist. India had dismissed the accusation as “absurd.”

Despite the diplomatic freeze, two-way goods and services trade reached about C$31 billion (USD 21.98 billion) in 2024. Trade experts noted that although the numbers grew, they remain small compared to India’s economic scale. Canada’s bilateral trade with China was almost four times larger in 2024.

Relations began improving after Modi and Carney met on the sidelines of the G7 summit in June.
Carney said he considers India a reliable trading partner, while acknowledging that there could be “some source of friction.”

Key outcomes from Modi–Carney meeting at the G20 Summit

During their meeting on Sunday in Johannesburg, Modi and Carney agreed to advance ties across several areas including:

Trade and Investment

Modi said India and Canada have “great potential” to strengthen trade and investment linkages and noted growing interest from Canadian Pension Funds in Indian companies.

India–Canada bilateral trade surpassed USD 30 billion in 2024.

Defence and Space

Both sides agreed to unlock new cooperation in defence and space sectors and to meet again soon.

Technology, Innovation and Energy

The leaders appreciated the momentum gained since their June 2025 meeting and welcomed the adoption of the Australia-Canada-India Technology and Innovation (ACITI) Partnership to boost cooperation in critical technologies, nuclear energy, supply chain diversification and AI.

Carney expressed support for the AI Summit to be hosted by India in February 2026.

Civil Nuclear Cooperation

Both sides reaffirmed their longstanding civil nuclear cooperation, noting ongoing discussions on long-term uranium supply arrangements.

Education and People-to-People Ties

The discussions also covered education collaborations and expanding mobility opportunities.

High-level exchanges and diplomatic reset

Modi extended an invitation to Carney to visit India, which the Canadian PM accepted.

A statement from Carney’s office said he would visit India in early 2026 and that both sides attach importance to regular high-level visits, including those by ministers and business leaders.

Recent engagements have continued to rebuild ties:

• External Affairs Minister S Jaishankar met Canadian Foreign Minister Anita Anand earlier this month in Niagara.

• Anand’s visit to India a month earlier included the unveiling of a roadmap on trade, critical minerals and energy.

• Canada’s international trade minister Maninder Sidhu also visited India this month for discussions on advancing trade and investment.

Both sides have agreed to revive various mechanisms to advance cooperation across sectors.

Why CEPA matters now

Carney said both countries want a trade agreement that provides clear rules, dispute mechanisms and protections for businesses on both sides.

“What we’re looking to do is to put that (commercial relationship) on a sound footing through a potential trade agreement between the two countries,” he said.

For Canada, Carney has pledged to double non-U.S. exports over the next decade. For India, the CEPA aligns with its strategic trade expansion goals.

What happens next

According to the Canadian PMO, both leaders agreed to formally launch CEPA negotiations covering:

• Goods

• Services

• Investment

• Agriculture and agri-food

• Digital trade

• Mobility

• Sustainable development

The two sides emphasized the importance of continued high-level engagement as negotiations restart. Both leaders said they look forward to meeting again soon.

(With inputs from agencies)