India-Canada Trade Deal Likely To Restart With Carney’s Visit
The bilateral trade negotiations also were suspended due to this.
Chennai: The Canadian Prime Minister Mark Carney’s visit could formally restart India-Canada Free Trade Agreement talks and help India plug the trade gap with the country.
“A key outcome of the Canadian Prime Minister’s visit could be the formal restart of India–Canada Free Trade Agreement (FTA) negotiations, along with a political commitment to conclude the pact within a defined timeframe.,” finds GTRI.
The trade relations with Canada were strained in 2023 following the allegations regarding India’s role in the killing of a Khalistan leader. The bilateral trade negotiations also were suspended due to this.
Canada wants to diversify trade beyond its heavy reliance on the United States, while India is seeking stable markets, and secure access to energy and critical minerals. Canada also has been making efforts to improve trade relations with its second largest trade partner, China. Compared to $118 billion trade with China, Canada’s trade with India is miniscule and has immense potential for growth.
The bilateral good trade between India grew to $8.6 billion in FY25 from $8.39 billion in FY24. Of this, exports have grown from $3.8 billion to $4.2 billion, while imports have come down from $4.5 billion to$4.4 billion. Still India has a $0.2 billion trade deficit with Canada, as per the data of the Commerce Ministry.
Bilateral trade in goods and services between India and Canada stood at $18.38 billion in 2023.
In goods trade, India exported products, including pharmaceuticals, gems and jewellery, textiles, and machinery, while Canada exported pulses, timber, pulp and paper, and mining products.
“As the two countries trade largely complementary goods rather than competing products, an FTA could significantly expand trade and investment, especially in agri-food, clean energy, critical minerals, etc,” said GTRI.
Another major outcome could be the signing of a long-term uranium supply agreement, which would expand India’s nuclear power capacity. For Canada, the deal would secure a reliable long-term market for uranium exports beyond the United States.
Further, about 2.9 million Indian diaspora and over 4,27,000 Indian students in Canada will receive benefits of better ties between the two nations.
