India and Canada are pushing to finalise a Comprehensive Economic Partnership Agreement (CEPA) before the end of 2025, with the largest business delegation ever from India currently in Ottawa for negotiations. The development marks a significant acceleration in bilateral trade ties following years of diplomatic strain between the two countries.

Key Developments in Ottawa

During a joint media address on 25 May, Canada's Minister of International Trade Maninder Sidhu warmly received India's Minister of Commerce and Industry Piyush Goyal, describing the visit as 'very timely.' Sidhu noted that two rounds of CEPA negotiations have already been completed, and that both sides will sit with their chief negotiators over the next 48 hours to advance the process.

'There's a lot of excitement to do more with India in terms of our economic partnership,' Sidhu said, adding that he has been hearing from business communities, Chambers of Commerce, and stakeholders across Canada. He also confirmed plans to lead a Canadian trade mission to India later this year, saying he wants to 'match the energy' that Minister Goyal brought to Canada.

The Trade and Investment Targets

Both ministers confirmed that their respective Prime Ministers have tasked them with completing the free trade agreement before the end of 2025, or earlier if possible. The broader goal is to triple bilateral trade from the current USD 17 billion to USD 50 billion by 2030.

Sidhu also referenced a CAD 2.6 billion uranium deal concluded in March as a signal of the growing depth of economic engagement. The CEPA talks, he said, are building on that momentum.

Diplomatic Reset After Eight Years

Minister Goyal pointed to the recent visit of Canadian Prime Minister Mark Carney to India — the first by a Canadian Prime Minister in eight years — as a turning point. 'It completely changed the way Canada and India looked at each other,' Goyal said, describing it as having 'set in motion the pathway to a complete overhaul of the India-Canada relationship.'

Goyal added that both sides are now operating in 'mission mode,' with clear speed and intent visible from both governments. 'Canada and India, two very consequential economies, two democracies,' he said, calling the relationship 'very important in the years to come' for both bilateral prosperity and contributions to global peace and security.

What the Delegation Signals

The scale of the Indian business delegation — described as the largest in history — underscores the seriousness with which New Delhi is approaching the Ottawa talks. This comes amid a broader global realignment of trade partnerships, with both India and Canada seeking to diversify economic linkages in a shifting geopolitical environment.

Notably, India-Canada ties had hit a prolonged rough patch following diplomatic tensions in 2023, making the current engagement a remarkable turnaround. With negotiators from both sides now in the room and a year-end deadline set by the two Prime Ministers, the coming months will be critical in determining whether CEPA can be brought to the finish line.