Relations between Canada and India are improving at a rapid pace, with growing confidence that negotiations on a Comprehensive Economic Partnership Agreement (CEPA) are nearing a conclusion, according to an article published by the Business Council of Canada. The momentum, the article notes, should allow leaders to finalise negotiations during Prime Minister Narendra Modi's anticipated visit to Canada in December 2026.

What the CEPA Would Mean

The CEPA has featured prominently in recent discussions among Canadian and Indian business leaders seeking stronger economic ties. However, the Business Council of Canada frames the agreement not as a destination but as a starting point — describing it as 'the beginning, not the end, of the bilateral journey.'

Parallel to the CEPA talks, negotiations are also under way on a Foreign Investment Promotion and Protection Agreement (FIPA). Canadian businesses remain deeply interested in stronger investment protections, making the investment treaty the logical next priority once the trade deal is sealed. The article also stresses that Canada must ensure the CEPA is fully implemented and that businesses are equipped to capitalise on the opportunities it creates.

Mumbai's Rising Role in Bilateral Ties

The Business Council of Canada article singles out Mumbai — India's financial hub — as a city poised to play a pivotal role in the next stage of economic relations between the two countries. It describes the scale of construction across Mumbai as 'remarkable,' observing that it is 'difficult to imagine another city undergoing as much transformation, at such speed and scale' over the next decade.

The article urges Canada to engage more deliberately with fast-growing states such as Maharashtra, noting that Indian capital formation is accelerating and Canadian investment is already present on the ground.

Economic Resilience and Strategic Diversification

Both Canadian and Indian business leaders, according to the article, see an urgent need for the two countries to work more closely so as to reduce vulnerability to economic coercion. India has faced significant disruptions to its supply chains and trade flows in recent years and is actively seeking reliable partners. The article frames the bilateral relationship not merely as a market-access play but as a broader strategy of diversification and economic resilience in an increasingly uncertain global environment.

Competition and What Canada Must Do Next

The article sounds a note of urgency for Canada, warning that it faces 'stiff competition from countries and companies that are equally determined to secure a place' in the Indian market. The recommended roadmap: conclude the CEPA, pursue a modern investment agreement, implement the trade deal effectively, and deepen engagement with high-growth Indian states. The political relationship is improving, Canadian capital is present, but execution speed will be decisive, the article argues.

With Prime Minister Modi's December visit now serving as a potential milestone, the next few weeks are likely to see intensified back-channel diplomacy between New Delhi and Ottawa to align positions before any formal signing ceremony.