India and Canada Seek to Revitalize Economic Partnership Through Ministerial Talks

Commerce and Industry Minister Piyush Goyal and Canadian Trade Minister Maninder Sidhu engaged in substantial discussions on Saturday, exploring avenues to enhance economic cooperation between India and Canada.

During their conversation, Goyal emphasized that "We discussed ways to find mutually beneficial opportunities for our businesses to capitalize on the complementarities offered by our two economies. I stressed that economic, trade and investment ties between India and Canada should be grounded in the principles of mutual respect, trust and balance," as he later shared on his X platform.

Responding to the meeting, Canada's Minister of International Trade Sidhu noted that he had conversed with India's Commerce Minister to progress discussions on deepening economic engagement and increasing connectivity between the two nations. He added, "Together, we're exploring new trade opportunities in clean technology, AI, agriculture, critical minerals, and other key sectors."

Goyal subsequently confirmed the interaction, stating: "Held a productive discussion with my Canadian counterpart @MSidhuLiberal."

These discussions hold particular significance given that Canada suspended negotiations for a free trade agreement with India in 2023. The bilateral relationship deteriorated significantly following then-Prime Minister Justin Trudeau's allegations of a potential Indian connection to Hardeep Singh Nijjar's killing—accusations that India firmly rejected as "absurd."

Prior to this diplomatic tension, in March 2022, both countries had reinitiated negotiations for an interim agreement, officially termed the Early Progress Trade Agreement (EPTA). The proposed trade agreement has already undergone over six rounds of negotiations.

Typically, such trade agreements involve countries substantially reducing or eliminating customs duties on the majority of goods traded between them, while also liberalizing regulations to promote service trade and attract investments.

Trade statistics indicate positive movement, with India's exports to Canada increasing by 9.8 percent to $4.22 billion in 2024-25 from $3.84 billion in 2023-24. However, imports declined slightly by 2.33 percent to $4.44 billion from $4.55 billion during the same period.

In a development that signals further diplomatic engagement, Canadian Foreign Minister Anita Anand is scheduled to begin her visit to New Delhi on Sunday.

The renewed energy in bilateral relations follows Prime Minister Narendra Modi's discussions with Canadian Prime Minister Mark Carney during the G7 summit at Canada's Kananaskis in June.