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Energy security, critical minerals, technology and investment are emerging as key areas of cooperation as the two countries target a year-end trade pact and seek to double bilateral trade to C$70 billion by 2030
A trade agreement may be the immediate goal, but India and Canada are pursuing a broader economic relationship spanning energy security, critical minerals, technology and investment as the two countries work to rebuild ties.
Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney had a phone conversation on Tuesday and discussed ways to strengthen bilateral ties across trade, energy, technology, finance and security, the Canadian government said in a statement. The leaders reaffirmed their commitment to conclude negotiations on a Comprehensive Economic Partnership Agreement (CEPA) at the earliest opportunity, supporting efforts to double two-way trade by 2030.
The leaders also discussed the impact of geopolitical instability on the Indo-Pacific region and the need for trusted partners in energy and agriculture, the statement said. Carney thanked Modi for his leadership in seeking a peaceful resolution to Russia’s war on Ukraine.
The conversation came as Canadian International Trade Minister Maninder Sidhu led a trade delegation of around 300 business representatives to India from October 12 to 17. The mission, which Canada describes as its largest trade delegation to India in more than 30 years, is seeking partnerships in aerospace, clean energy, technology, life sciences, agri-food and forestry.
The visit coincides with efforts to advance CEPA negotiations, with both countries targeting a deal by the end of 2026. The fifth round of negotiations took place in Ottawa from October 5 to 9.
More from WorldEnergy and critical minerals take centre stage
Energy security and critical minerals are emerging as important areas in the proposed partnership, as India seeks reliable supplies of resources to support its economic expansion and manufacturing ambitions.
Sidhu has highlighted opportunities in liquefied natural gas (LNG), critical minerals and aerospace. Greater cooperation could help Canadian businesses access India’s growing market while giving Indian companies opportunities to diversify supplies and develop industrial partnerships.
Critical minerals are particularly important to supply chains for clean energy technologies and advanced manufacturing. Cooperation could extend beyond trade in raw materials to investment, research and supply-chain development, although the precise commitments will depend on the outcome of negotiations and subsequent commercial agreements.
Aerospace and clean technology are also among the sectors targeted by the Canadian trade mission. These areas offer scope for industrial collaboration, technology partnerships and investment between companies in the two countries.
The broader agenda includes artificial intelligence and financial services. However, the latest conversation between Modi and Carney did not result in any publicly announced new commercial agreement in these sectors.
What the proposed trade pact could change
CEPA is intended to establish a framework for expanding trade in goods and services, improving market access and supporting investment. The final benefits for businesses will depend on the terms agreed by both sides, including tariff concessions and other market-access commitments.
Canada’s exports to India included vegetables, mineral fuels and oils, and wood pulp. Its imports from India included precious stones and metals, machinery and pharmaceutical products.
For Indian exporters, improved market access could create opportunities to expand sales in Canada. Canadian companies, meanwhile, are seeking to reach more customers in India’s large consumer market and supply businesses supporting its industrial expansion.
However, a higher trade target will not automatically translate into gains for every sector. The agreement’s eventual impact will depend on the concessions secured, the treatment of sensitive industries and whether companies can compete effectively in each other’s markets.
Why Canada wants to deepen economic ties with India
Canada’s push to expand commercial engagement with India also reflects its broader effort to diversify trade beyond the United States.
Ottawa’s Indo-Pacific Strategy, launched in 2022, identified trade, regional security, sustainability and people-to-people ties as important priorities. India offers opportunities for Canadian businesses seeking access to a large market, while Canadian energy and mineral resources could support India’s industrial and energy-transition requirements.
The proposed pact could provide a more predictable framework for businesses to explore opportunities across sectors. Investment protection, regulatory clarity and easier access to markets will be important considerations as negotiations progress.
The two countries have pursued other channels of economic engagement alongside CEPA. In August, Finance Minister Nirmala Sitharaman and Canadian Finance Minister François-Philippe Champagne held the inaugural India-Canada Economic and Financial Dialogue, discussing investment and financial cooperation.
India also expressed readiness to begin negotiations on a bilateral investment treaty, a separate initiative that could provide a framework for investment between the countries.
Can India and Canada meet the year-end deadline?
The latest negotiations follow renewed efforts to strengthen economic relations during Carney’s visit to India in March 2026. The fifth round of CEPA talks, held in Ottawa from October 5 to 9, marks another step towards the proposed agreement.
Canadian Foreign Minister Anita Anand is also visiting India from October 13 to 16 to advance shared priorities, including trade, energy, security and defence.
The two prime ministers have agreed to remain in close contact ahead of Modi’s planned visit to Canada in December. That visit could provide another opportunity to advance the relationship, although the outcome of the negotiations remains uncertain.
