India and Canada have signalled a sharp acceleration in bilateral ties, with senior ministers from both countries expressing confidence that a long-pending Comprehensive Economic Partnership Agreement (CEPA) could be concluded by the end of 2025. The push came during high-level meetings in Ottawa on 26 May, as Commerce and Industry Minister Piyush Goyal led what Canadian officials described as the largest-ever Indian business delegation to Canada.

What Both Sides Said

Canadian Prime Minister Mark Carney called the prospective free trade deal 'a game changer for Canadian workers and businesses — unlocking a massive new market,' in a social media post following his meeting with Goyal. Carney said the two sides reviewed progress in negotiations and explored cooperation in 'energy, agri-food, tech, and education.'

Goyal described the bilateral relationship as 'being reset very, very rapidly,' adding that the two Prime Ministers had tasked negotiators with completing 'the free trade agreement with a comprehensive outlook before the end of this year or earlier.' He also conveyed 'warm greetings' from Prime Minister Narendra Modi to Carney, citing the Canadian leader's recent visit to India as having 'imparted fresh momentum and renewed confidence to the India-Canada partnership.'

Key Developments in Ottawa

Canada's International Trade Minister Maninder Sidhu confirmed that two rounds of CEPA negotiations had already been completed and said both sides were 'moving fast.' Sidhu noted that Canada was looking to diversify its trade relationships and unlock 'roughly $300 billion of additional non-US exports,' positioning India as a central partner in that pivot.

Goyal also held separate meetings with Canadian Foreign Minister Anita Anand and Agriculture Minister Heath MacDonald, covering trade, food security, agri-tech, sustainability, technology, and investment cooperation. Anand said discussions focused on 'strengthening and expanding our trade relationship to create new opportunities for businesses, workers, and investors in both our countries.'

Why This Reset Matters

The diplomatic warmth marks a notable turnaround from a period of acute friction between New Delhi and Ottawa, which had strained ties significantly. India-Canada bilateral trade has remained well below its potential, and both sides have now signalled a target of sharply raising trade volumes by 2030. Sidhu described India as 'one of the world's fastest-growing major economies,' underlining why strengthening ties with New Delhi is seen as economically consequential for Canada.

This comes amid a broader global shift, with Canada actively seeking to reduce its dependence on the United States following trade tensions. For India, a CEPA with Canada would open access to Canadian energy, agricultural commodities, and technology, while giving Indian businesses and professionals expanded entry into the Canadian market.

What Happens Next

With two negotiating rounds already concluded, both governments have indicated that talks will intensify through the remainder of the year. Goyal said negotiators feel 'empowered to make rapid progress to deliver results not only to businesses, but to the people of both countries.' Industry groups and diaspora business communities on both sides are expected to be closely consulted as the agreement takes shape.