India and Canada have stepped up efforts to revive and fast-track negotiations for a major trade agreement, signaling a fresh phase in bilateral relations after years of diplomatic strain. Canadian Prime Minister Mark Carney described the proposed Comprehensive Economic Partnership Agreement (CEPA) as a “game changer” for Canadian businesses and workers, highlighting the economic potential of deeper ties with India. The remarks came after his meeting with Indian Commerce and Industry Minister Piyush Goyal in Ottawa.

According to officials from both countries, the renewed push is aimed at strengthening trade, investment, and sectoral cooperation in areas such as energy, agriculture, technology, education, aerospace, and advanced manufacturing. Carney said Canada is “working fast” on the proposed trade deal, noting that the agreement could open access to one of the world’s fastest-growing major economies.

The CEPA negotiations, which began more than a decade ago, had slowed following tensions between Ottawa and New Delhi in 2023. However, recent diplomatic engagements appear to have restarted momentum. Indian minister Piyush Goyal said relations between the two countries are now moving toward a “rapid reset,” with both sides showing strong intent to rebuild economic cooperation. India has also sent its largest-ever business delegation to Canada during Goyal’s visit, with representatives from sectors including mining, energy, automotive, and aerospace industries participating in discussions.

Officials indicated that both countries are targeting a sharp increase in bilateral trade over the next few years, with a goal of reaching nearly $50 billion in trade by 2030. Experts believe the proposed CEPA could benefit Indian exporters by improving market access in North America, while Canadian firms could gain stronger entry into India’s expanding consumer and industrial markets. Sectors such as clean energy, critical minerals, artificial intelligence, pharmaceuticals, agri-food, and education are expected to see major opportunities if the agreement moves forward.

The renewed engagement also reflects a broader global shift, as countries look to diversify trade partnerships and reduce overdependence on a limited number of markets. Analysts say stronger India-Canada economic ties could help both nations build more resilient supply chains and expand long-term strategic cooperation. While trade negotiations are still ongoing, both governments have expressed optimism about reaching an agreement within the next phase of talks.

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