India and Canada have agreed to restart negotiations for a Free Trade Agreement (FTA), aiming to boost bilateral trade to $50 billion by 2030, Commerce and Industry Minister Piyush Goyal said. Speaking at an event on Monday, Goyal described the FTA, or Comprehensive Economic Partnership Agreement (CEPA), as a strategic initiative reflecting the trust between the two nations. He added that the agreement would enhance confidence among investors and businesses on both sides.

“We have agreed to begin high-ambition CEPA negotiations and aim to double trade between our countries by 2030,” Goyal said, noting that India and Canada are natural allies rather than competitors. He highlighted that the complementary strengths of both countries could benefit businesses and investors. Goyal pointed out potential areas of collaboration, including critical minerals, processing technologies, and nuclear energy, particularly uranium supplies, while emphasizing opportunities to diversify supply chains.

Negotiations for an India-Canada FTA were paused in 2023 after tensions arose following former Prime Minister Justin Trudeau’s allegations linking India to the killing of Hardeep Singh Nijjar, which India dismissed as “absurd.” Earlier, in March 2022, both countries had relaunched talks through an Early Progress Trade Agreement (EPTA), and more than half a dozen negotiation rounds have been held so far.

Typically, such trade agreements aim to reduce or remove customs duties on traded goods, liberalize service trade, and attract investment. India’s exports to Canada rose 9.8% to $4.22 billion in 2024-25 from $3.84 billion in 2023-24, while imports fell 2.33% to $4.44 billion from $4.55 billion during the same period.

The renewed engagement follows talks between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney at the G7 summit in Kananaskis, Canada, in June. Bilateral trade in goods and services between the two nations totaled $18.38 billion in 2023, with around 2.9 million people of Indian origin and over 427,000 Indian students residing in Canada.