Ottawa highlights energy, critical minerals and aerospace opportunities as both countries work toward comprehensive trade agreement by end of 2026
Canada has reaffirmed its commitment to strengthening economic relations with India, positioning itself as a dependable long-term partner in energy, critical minerals and aerospace as the two countries advance negotiations toward a Comprehensive Economic Partnership Agreement (CEPA).
The Canadian government expressed optimism about expanding bilateral trade and investment, emphasizing India’s rapid economic growth and the significant opportunities it presents for businesses and workers in both countries.
In a statement to IANS, Global Affairs Canada highlighted India’s annual economic growth of approximately seven per cent, describing the country as one of the world’s fastest-growing major economies.
Canadian officials indicated that stronger commercial cooperation could generate new investment, support employment and establish a more diversified economic partnership.
The announcement coincides with the fifth round of CEPA negotiations taking place this week, with Ottawa and New Delhi aiming to finalize a comprehensive trade agreement by the end of 2026.
The latest discussions follow diplomatic and commercial engagements involving Canadian International Trade Minister Maninder Sidhu and Indian Commerce and Industry Minister Piyush Goyal.
The ministers recently met on the sidelines of the G20 Trade Ministers’ Meeting in Milwaukee, where they reviewed progress in negotiations and discussed opportunities to strengthen bilateral economic cooperation.
Their meeting followed Sidhu’s visit to Mumbai and earlier discussions in Canada, where the Canadian minister hosted Goyal and a delegation of Indian business leaders for a Trade and Investment Forum.
Global Affairs Canada said these engagements have helped build momentum toward a broader agreement designed to reduce trade barriers and encourage investment across key industries.
Energy cooperation has emerged as a major priority in Canada’s strategy to deepen economic ties with India.
According to Canadian government estimates, India’s energy requirements are projected to increase by approximately 70 per cent by 2035, creating substantial demand for reliable international suppliers.
Ottawa believes Canada’s energy resources and infrastructure investments could help meet that demand while supporting India’s long-term economic expansion.
The government highlighted the second phase of the LNG Canada project, which has secured approximately $33 billion in investment.
Canadian officials said the development could contribute to positioning Canada among the world’s five largest exporters of liquefied natural gas within the next five years.
Nuclear energy is another important component of the growing partnership.
In March, India and Canadian uranium producer Cameco reached a $2.6-billion agreement for the supply of nearly 22 million pounds of uranium through 2035.
The agreement is expected to support India’s nuclear energy requirements while strengthening Canada’s role as a supplier of essential resources for the country’s expanding electricity sector.
Beyond energy, Canada is seeking to expand cooperation in critical minerals, which are increasingly important for clean energy technologies, advanced manufacturing and industrial development.
Aerospace has also been identified as a promising area for bilateral trade.
Global Affairs Canada estimates that India will require approximately 2,000 new aircraft in the coming years, presenting significant opportunities for Canadian aerospace manufacturers and related industries.
Ottawa has emphasized its capacity to contribute to India’s growing aviation sector through aircraft production, technological expertise and industrial partnerships.
Canadian officials said the country’s strengths across energy, critical minerals and aerospace could establish it as a reliable supplier to India over the coming decades.
The two governments have set an ambitious target of increasing annual bilateral trade to $70 billion by 2030.
According to Canadian government figures, trade in goods and services between Canada and India reached $30.4 billion in 2025, including $13.6 billion in merchandise trade.
Canadian merchandise exports to India totalled approximately $3.9 billion, while imports from India reached $9.7 billion.
The figures illustrate the existing commercial relationship while highlighting opportunities for further expansion under a comprehensive trade agreement.
Sidhu has emphasized the importance of reaching an agreement that creates tangible economic benefits for businesses and workers in both countries.
The negotiations also form part of Canada’s broader efforts to diversify its international trade relationships and reduce dependence on the United States.
Amid continuing uncertainty surrounding North American trade relations, Ottawa is increasingly seeking opportunities in major international markets, including India.
As part of this strategy, Canada is preparing to lead a Team Canada Trade Mission to India from October 12 to 17.
The mission is expected to promote Canadian businesses, encourage investment partnerships and explore commercial opportunities across sectors with strong growth potential.
The renewed economic engagement also reflects improving diplomatic relations between Ottawa and New Delhi following a period of bilateral tensions.
Both governments have increasingly focused on rebuilding cooperation through trade, investment and high-level ministerial discussions.
With the fifth round of CEPA negotiations underway and a year-end deadline approaching, Canada and India are working to establish a framework for closer long-term economic integration.
For Ottawa, the proposed agreement represents an opportunity to strengthen its presence in one of the world’s largest emerging markets. For New Delhi, deeper cooperation with Canada could provide access to important energy resources, critical minerals, aerospace capabilities and investment.
The outcome of the negotiations will help determine whether the two countries can translate renewed diplomatic engagement into a broader and more substantial economic partnership.
