India and Canada have formally launched negotiations for the Comprehensive Economic Partnership Agreement (CEPA) in New Delhi, marking a significant step forward in bilateral economic engagement.
The Terms of Reference (ToR) for the India–Canada Comprehensive Economic Partnership Agreement (CEPA) were signed on March 2, 2026, setting the stage for structured and time-bound discussions under the proposed CEPA framework.
The ToR for the CEPA were signed by Piyush Goyal, Minister of Commerce & Industry, and Maninder Sidhu, Minister of International Trade of Canada. The documents were exchanged in the presence of Narendra Modi and Mark Carney at Hyderabad House.
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CEPA to Drive Bilateral Trade to US$50 Billion by 2030
During the ceremony, Prime Minister Modi underlined that the goal for bilateral trade is to reach US$50 billion by 2030, emphasizing that the CEPA would unlock the full potential of economic cooperation between the two countries.
He noted that India and Canada have decided to finalise the Comprehensive Economic Partnership Agreement (CEPA) soon to accelerate this objective.
Prime Minister Carney stated that the CEPA represents “the expansion of a valued partnership with new ambition, focus, and foresight—a partnership between two confident countries charting own course for the future.”
The CEPA framework is expected to create a comprehensive and mutually beneficial platform for trade and investment, reinforcing economic ties between the two nations.
Structured Roadmap for Negotiations
The ToR of negotiations under the agreement will define the format, frequency, and approach for India–Canada discussions. It will serve as a guide to facilitate negotiations aimed at concluding an ambitious, balanced, and mutually beneficial Comprehensive Economic Partnership Agreement.
As a follow-up to the leaders’ statement during their bilateral meeting on the margins of the G7 meeting in Kananaskis, Canada, in October 2025, both sides began working towards finalising the ToR for CEPA negotiations.
The signing of the ToR now formally operationalises the negotiation process under the CEPA framework.
The CEPA negotiations are set to cover trade in goods, services, and other mutually agreed policy areas, broadening the scope of engagement beyond traditional trade components.
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Economic Potential Under the Framework
Canada represents a market of 41.65 million people (2025) and has a GDP of US$2.34 trillion in purchasing power parity (PPP) terms.
The India–Canada CEPA holds significant potential to unlock and expand bilateral trade, which stood at US$8.66 billion in FY 2024–25. This includes exports of US$4.22 billion and imports of US$4.44 billion, according to DGCI&S data.
Key exports from India to Canada include drugs and pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods, and chemicals.
On the import side, India sources pulses, pearls and semiprecious stones, coal, fertiliser, paper, and petroleum crude from Canada. The CEPA is expected to provide greater market access and improved trade facilitation across these segments.
Services Trade and Future Growth
In the services sector, India’s key exports to Canada include telecommunications, computer and information services, and other business services.
These sectors are expected to witness further expansion following the conclusion of the CEPA, as regulatory cooperation and market access provisions are streamlined under the agreement.
Canada is also home to over 425,000 Indian students and a strong Indian community. These enduring people-to-people ties, described as “One Family,” are expected to be further reinforced by the successful conclusion of the agreement.
With the formalisation of the Terms of Reference, both governments have signalled their commitment to fast-track discussions and move towards finalising the Comprehensive Economic Partnership Agreement in the near term.
