Canada is aiming to finalize a trade agreement with India before the end of 2026 as both countries seek to strengthen economic cooperation, expand investment opportunities and diversify their international partnerships amid growing global trade uncertainty.
Canadian International Trade Minister Maninder Sidhu expressed optimism about the negotiations during an interview with Bloomberg, saying both sides have demonstrated strong momentum toward reaching an agreement. The fifth round of trade discussions began on October 5, following negotiations held in September. Indian Prime Minister Narendra Modi is expected to visit Canada in December, potentially providing an opportunity for the two governments to formally sign a completed agreement.
The renewed push for closer economic relations comes as Canada faces heightened trade tensions with the United States following the breakdown of bilateral negotiations. India is also confronting potential American tariffs under legislation that would allow U.S. President Donald Trump to impose duties of up to 100 per cent on countries purchasing Russian oil and gas.
Sidhu identified mining, food security, infrastructure development, nuclear energy and critical minerals as key sectors where Canada and India could expand cooperation. He emphasized that businesses in both countries are eager to strengthen commercial relationships and take advantage of emerging investment opportunities.
According to Canadian government figures, bilateral trade in goods and services reached approximately $30.4 billion in 2025. Leaders from both countries have established an ambitious target of increasing that figure to $70 billion, with energy and critical minerals expected to play important roles in achieving the goal.
During discussions with major Indian business groups in Mumbai, Sidhu highlighted Canada’s ability to support India’s expanding economy through energy exports, mineral resources and supply chain development. He also indicated that Ottawa is interested in participating in major infrastructure and industrial projects as India continues to pursue economic growth.
Nuclear energy represents another promising area for bilateral cooperation. India is gradually opening its nuclear power sector to private investment as part of efforts to expand electricity generation capacity. Canada’s substantial uranium reserves, advanced nuclear technology and industry expertise could position Canadian companies to supply fuel and participate in future energy projects.
Sidhu acknowledged that trade negotiations can be challenging but emphasized that Ottawa remains focused on securing an agreement that benefits Canadian businesses while supporting India’s development priorities.
The proposed agreement is expected to strengthen Canada-India economic relations, create new opportunities for businesses and investors, and help both countries reduce their dependence on traditional trading partners.
