Sitharaman in Toronto: India-Canada financial ties can deepen on shared strengths
Synopsis
Finance Minister Sitharaman used a Toronto roundtable to make a data-backed pitch for India-Canada financial integration — pointing to a 20-year low in bank NPAs, UPI-led DPI, and GIFT IFSC as concrete entry points for Canadian institutional capital. The meeting signals a deliberate effort to reframe the bilateral relationship around economics after a period of diplomatic strain.
Key Takeaways
Finance Minister Nirmala Sitharaman addressed the India-Canada Business Roundtable in Toronto on 28 August 2025 .
Canadian Finance Minister François-Philippe Champagne was present at the high-level meeting.
India's gross NPA ratio for Scheduled Commercial Banks fell from 11.18% in March 2018 to 2.31% in March 2025 — a two-decade low .
Sitharaman invited Canadian institutions to explore GIFT IFSC across banking, fund management, reinsurance, and sustainable finance.
Digital cooperation — covering cross-border remittances, payments, and UPI -linked infrastructure — was flagged as a key pillar of future engagement.
Union Finance Minister Nirmala Sitharaman on Friday, 28 August called for a significant deepening of financial-sector cooperation between India and Canada, saying the two economies possess strong complementarities that can anchor long-term investment partnerships. She was speaking at a high-level India-Canada Business Roundtable in Toronto, held in the presence of Canadian Finance and National Revenue Minister François-Philippe Champagne.
Key Developments at the Toronto Roundtable
Sitharaman framed the bilateral opportunity in clear terms: India contributes scale, growth, and investment openings, while Canada brings long-term institutional capital, sectoral depth, and expertise. The Ministry of Finance said she 'highlighted the fresh momentum in India–Canada economic engagement and called for translating it into deeper financial-sector cooperation and long-term investment partnerships.'
The minister also pointed to digital finance as a growing pillar of bilateral cooperation. 'India and Canada are now exploring how digital technologies can further strengthen our financial cooperation, including easier payments, cross-border remittances and greater digital payment choices for citizens,' she said.
India's Banking Sector Transformation
Sitharaman outlined a decade of reform-led change in India's financial architecture. She cited the Asset Quality Review, the Insolvency and Bankruptcy Code (IBC), the 4R approach, and EASE reforms as measures that have materially strengthened the banking system. A headline data point underscored the progress: the gross non-performing assets (NPA) ratio of Scheduled Commercial Banks fell from 11.18% in March 2018 to 2.31% in March 2025 — its lowest level in two decades.
Digital Public Infrastructure and Capital Markets
The Finance Minister highlighted India's expanding financial ecosystem, pointing to the deepening of capital markets, growth of the insurance sector, fintech innovation, and the rise of Digital Public Infrastructure (DPI) — including JAM, UPI, Account Aggregator, and India Stack. These platforms, she noted, have created a strong foundation for a 'deeper and more people-centric India-Canada partnership.'
GIFT IFSC and Investment Opportunities
Sitharaman specifically invited Canadian financial institutions to explore GIFT IFSC — India's dedicated gateway for cross-border financial activities. She listed opportunities spanning banking, fund management, reinsurance, sustainable finance, Global Capability Centres (GCCs), and aircraft and ship leasing. This comes amid broader efforts by India to position GIFT City as a competitive international financial hub.
What Was Discussed and What Comes Next
According to Sitharaman, the roundtable covered three broad areas: macroeconomic developments and domestic policy priorities for each country, recognition of bilateral complementarities, and the scope for deeper investment cooperation. 'India has demonstrated remarkable macroeconomic resilience,' she noted. The discussions mark a notable warming in India-Canada economic engagement at a time when the two countries are working to move past diplomatic friction and refocus on trade and investment ties. Whether this translates into concrete frameworks — such as a bilateral investment treaty or regulatory equivalence arrangements — will be the next test of intent.
Point of View
And Sitharaman's appearance alongside Champagne is a deliberate attempt to shift the frame back to commerce. The NPA numbers she cited are genuine and significant — a fall from 11.18% to 2.31% in seven years is a structural achievement, not a talking point. But the harder question is whether Canadian institutional capital, which has long had India exposure through pension funds like CPPIB and CDPQ, will find new entry points compelling enough to expand commitments. GIFT IFSC remains underleveraged relative to its ambition; Canadian participation there would be a real test of whether this roundtable produces results or remains a photo opportunity.
NationPress
28 Aug 2026
Frequently Asked Questions
What did Finance Minister Sitharaman say at the India-Canada Business Roundtable in Toronto?
Sitharaman called for deeper financial-sector cooperation and long-term investment partnerships between India and Canada, arguing the two economies have strong complementarities. She highlighted India's reformed banking system, Digital Public Infrastructure, and GIFT IFSC as key areas of opportunity for Canadian institutions.
What is the current NPA ratio of Indian banks and why does it matter?
The gross non-performing assets ratio of Scheduled Commercial Banks stood at 2.31% in March 2025, down from 11.18% in March 2018 — its lowest level in two decades. The sharp decline reflects the impact of reforms including the Insolvency and Bankruptcy Code and the Asset Quality Review, and signals a materially healthier banking sector to foreign investors.
What is GIFT IFSC and why was it highlighted at the Toronto meeting?
GIFT IFSC (Gujarat International Finance Tec-City International Financial Services Centre) is India's dedicated gateway for cross-border financial activities. Sitharaman invited Canadian financial institutions to explore opportunities there spanning banking, fund management, reinsurance, sustainable finance, and aircraft and ship leasing.
How does digital finance factor into India-Canada cooperation?
Both sides are exploring how digital technologies — including cross-border remittances, easier payments, and expanded digital payment choices — can strengthen financial ties. India's UPI, Account Aggregator, and India Stack platforms were cited as infrastructure that could underpin deeper bilateral digital-finance integration.
What is the broader context of Sitharaman's Toronto visit?
The visit comes at a time when India and Canada are working to rebuild economic engagement after a period of diplomatic friction. The high-level business roundtable, held alongside Canadian Finance Minister François-Philippe Champagne, is seen as a deliberate effort to refocus the bilateral relationship on trade, investment, and financial-sector cooperation.
