Canada and India’s evolving trade relationship shines a light on changing world order
As published in The Toronto Star
India and Canada have entered a new phase in their relationship, marked by renewed strategic intent and stronger economic engagement.
Building on Prime Minister Mark Carney’s visit to India earlier this year, commerce and industry minister Piyush Goyal’s visit to Canada this week signalled both countries’ interest in resetting ties and expanding trade and investment.
A central objective of the visit was to relaunch negotiations toward a Comprehensive Economic Partnership Agreement. A balanced, forward-looking CEPA could provide the structure for a more ambitious trade relationship and help support the goal of doubling bilateral trade by 2030.
India-Canada relations have long been anchored in strong people-to-people bonds, with economic ties steadily gaining ground. Bilateral trade and investment, while still developing, show considerable untapped potential. Recent efforts show a clear intention on the part of both countries to address impediments and build a more robust, forward-looking collaboration.
The opportunity is clear. India offers scale, manufacturing growth and digital capacity; Canada brings natural resources, advanced technologies and a stable regulatory environment.
Critical minerals, energy and technology stand out as priority areas for co-operation, with potential to strengthen supply chains in clean technology, advanced manufacturing, artificial intelligence and digital infrastructure.
The main challenge is to translate these complementarities into practical co-operation. Greater engagement between businesses in both countries will help convert strategic intent into commercially viable and durable outcomes.
Beyond economics and technology, the evolution in India-Canada relations includes strategic and security dimensions. The India-Canada Defence Dialogue, enhanced cybersecurity co-operation and law enforcement liaison mechanisms all broaden the partnership’s scope.
Turning momentum into results will require effective institutional support. The revival of the India-Canada CEO Forum, led by the Business Council of Canada and the Confederation of Indian Industry, can help align policy with business priorities and keep the private sector engaged.
While the prospects are significant, challenges remain. CEPA negotiations will require effective co-ordination. Ultimately, the success of this renewed engagement depends on the capacity of both countries to deliver tangible outcomes. The private sector is actively involved in the partnership framework.
Indian minister Goyal and Canada’s Minister of International Trade Maninder Sidhu spoke at the Trade and Investment Forum held in Toronto and their message to industry was unequivocal: India and Canada must leverage the current political reset and momentum in ties to proactively build commercial partnerships now, particularly in critical minerals, digital infrastructure, nuclear co-operation, education, technology, and in supporting small and medium-sized enterprises and startups as well.
During their meeting this week, leaders committed to moving forward to conclude CEPA negotiations this year, and for Canada to reciprocate with a major trade mission to India this fall.
The evolving India-Canada relationship reflects a shift in the global order. As traditional alliances are redefined and new economic corridors are emerging, middle powers are seeking flexible, durable, interest-based partnerships. India and Canada, with shared democratic values and complementary strengths, are well-positioned to help shape this changing global landscape.
At a time of economic uncertainty and geopolitical transition, a pragmatic and future-oriented partnership between India and Canada can contribute meaningfully to resilient supply chains, sustainable growth and regional stability.
