CEPA to conclude by end‑2026, targeting $50 billion bilateral trade by 2030 from $31 billion today
Co‑operation on critical minerals, energy security, AI and data centres highlighted
Cross‑border payments, fintech, capital markets and Canadian pension funds eye Indian infrastructure and asset monetisation
CEPA Momentum and Trade Growth India and Canada have set a clear timetable for their Comprehensive Economic Partnership Agreement (CEPA), launched in March 2026. Both finance ministers agreed the pact should be finalised by the end of the year, with the aim of expanding bilateral trade to $50 billion by 2030 from the current $31 billion. The accelerated timeline reflects the growing need to diversify supply chains and strengthen economic ties amid global uncertainties.
Strategic Focus: Critical Minerals & Energy Security A key pillar of the agreement is cooperation on critical minerals and energy security. India and Canada identified specific areas for follow‑up, including the supply of rare earths, lithium and other minerals vital for green technology. The ministers also highlighted the nexus between food, energy, economics and national security, signalling a joint push towards AI, data centres and sustainable infrastructure.
Financial & Capital Market Collaboration Beyond trade, the talks covered practical avenues for deeper financial integration. Cross‑border payments, fintech, capital markets and financial stability were earmarked for closer cooperation. Canadian pension funds expressed keen interest in expanding their presence in India, especially in infrastructure, asset monetisation pipelines, space and fintech sectors. Enhanced payment mechanisms for Indian students in Canada were also discussed, aiming to streamline remittances and improve financial flows.
Multilateral Outlook Both sides underscored the importance of sustained dialogue and constructive engagement to unlock the full potential of the India‑Canada relationship. While Canada maintains a balanced stance in its trade relations with the U.S., it remains committed to fostering a robust partnership with India that leverages complementary strengths in technology, finance and natural resources.
