India and Canada are taking important steps to strengthen their economic partnership after months of diplomatic tension. Commerce and Industry Minister Piyush Goyal and his Canadian counterpart Maninder Sidhu recently held productive discussions to explore new trade opportunities and rebuild trust between the two nations.
Building Economic Partnership Through Key Sectors
The two trade ministers focused on identifying new business opportunities in several important sectors. During their meeting, they discussed expanding cooperation in clean technology, artificial intelligence, agriculture, and critical minerals. Minister Sidhu emphasized that both countries are working to deepen economic engagement and increase connectivity between their markets.
Piyush Goyal stressed that economic and trade ties between India and Canada should be based on mutual respect, trust, and balance. The discussions aimed to help businesses from both countries take advantage of the strengths and complementary nature of their economies. Both ministers agreed that there are significant opportunities for growth in sectors like infrastructure, clean technologies, and information and communication technologies.
Overcoming Past Diplomatic Challenges
These trade talks are especially important because they mark a fresh start for India-Canada relations after a difficult period. In 2023, Canada had paused free trade agreement negotiations with India following diplomatic tensions. The relationship had hit a low point when former Prime Minister Justin Trudeau made allegations linking India to the killing of Hardeep Singh Nijjar, which India strongly rejected as “absurd”.
Despite these challenges, both countries have been working to rebuild their partnership. The two nations had originally launched negotiations for the Early Progress Trade Agreement (EPTA) in March 2022, and several rounds of talks have already taken place. This interim trade agreement aims to reduce customs duties and make it easier for businesses to trade and invest between the countries.
Growing Trade Numbers Show Promise
The economic data shows positive momentum for India-Canada trade relations. India’s exports to Canada increased by 9.8 percent to $4.22 billion in 2024-25, compared to $3.84 billion in the previous year. However, imports from Canada slightly decreased by 2.33 percent to $4.44 billion during the same period.
FAQs [Frequently Asked Questions]
- What key sectors were discussed in the India-Canada trade ministers’ meeting?
Piyush Goyal and Maninder Sidhu focused on new opportunities in clean technology, artificial intelligence, agriculture, and critical minerals to boost economic ties and market connectivity between India and Canada. - What is the Early Progress Trade Agreement (EPTA) between India and Canada?
The EPTA is an interim trade pact launched in 2022 to reduce customs duties, promote services trade, and attract investments, serving as a step toward a full Comprehensive Economic Partnership Agreement (CEPA). - How has bilateral trade between India and Canada evolved recently?
India’s exports to Canada rose 9.8% to $4.22 billion in 2024-25, while imports fell 2.33% to $4.44 billion, with total trade reaching $23.66 billion amid efforts to resume negotiations.