India-Canada goods trade rises as CEPA talks gain momentum ahead of December deadline

Merchandise trade between India and Canada has recorded double-digit growth in the first eight months of 2026, signalling a revival in economic ties as the two countries work towards concluding a Comprehensive Economic Partnership Agreement (CEPA) by December.

Canadian merchandise exports to India reached CA$3.03 billion between January and August, marking a 36.7% year-on-year increase, according to data from Statistics Canada cited by the Asia-Pacific Foundation of Canada. The foundation said the growth was the sixth-largest among Canada's 27 principal trading partners.

Canada's merchandise imports from India also rose during the period, increasing 10.2% year-on-year to CA$7.05 billion.

The trade figures come amid renewed diplomatic engagement between the two countries, including discussions between Prime Minister Narendra Modi and his Canadian counterpart, Mark Carney, as well as visits by senior Canadian ministers and a major trade delegation.

Canadian exports led by metals, minerals and agri-food

Metals and minerals accounted for the largest share of Canada's merchandise exports to India between January and August, representing 41% of the total. Agri-food products followed, accounting for 16.9%.

For the whole of 2025, Canadian merchandise exports to India stood at CA$3.9 billion, while imports from India totalled CA$9.7 billion.

The Asia-Pacific Foundation of Canada described goods trade between the two countries as already gaining momentum even as negotiations on the broader trade agreement continue.

Vina Nadjibulla, co-founder and chief executive of the Centre for Strategic Statecraft, described the latest developments as one of the “biggest weeks” in bilateral relations.

“We’re seeing something remarkable,” Nadjibulla said, pointing to the momentum and political will behind the renewed engagement. She added that discussions on other areas, including mobility, would proceed alongside the CEPA negotiations.

Trade mission secures 34 commercial agreements

The renewed engagement was reinforced by a Canadian trade mission led by International Trade Minister Maninder Sidhu, who brought nearly 300 delegates to India. Sidhu announced 34 commercial agreements valued at close to CA$300 million for Canadian businesses.

In a statement issued by Global Affairs Canada on Friday, Sidhu said Canadian companies had built valuable connections in sectors ranging from energy and critical minerals to aerospace. He added that the partnerships would strengthen long-term economic ties and create opportunities for businesses and workers in both countries.

Sidhu also met Union Commerce and Industry Minister Piyush Goyal to advance negotiations on the CEPA. The two ministers have met 10 times since May 2025, according to the Canadian government's statement.

CEPA negotiations target December conclusion

India and Canada have completed five rounds of negotiations on the proposed trade agreement, with negotiators expected to hold two more rounds as they work towards the December deadline set by the two prime ministers.

The agreement is intended to expand market access, reduce trade barriers and strengthen cooperation across goods, services and investment. Both governments have also committed to expanding bilateral trade, with Canada aiming to double two-way trade with India to CA$70 billion annually by 2030.

The latest diplomatic push follows a telephone conversation between Modi and Carney on Tuesday, during which the leaders reaffirmed their commitment to concluding the CEPA negotiations as soon as possible.

Canadian Foreign Minister Anita Anand also travelled to India amid the renewed engagement, with discussions covering trade and broader bilateral cooperation.

Modi is scheduled to visit Canada in the second week of December. With the CEPA deadline approaching and commercial agreements already being announced, the visit is expected to provide another opportunity for the two governments to advance their economic partnership.