India, Canada race to seal trade deal; trade minister to visit New Delhi again in October

His meeting with Commerce Minister Piyush Goyal follows the fifth round of negotiations for the India-Canada economic partnership agreement.

Canadian trade minister Maninder Sidhu is expected to visit India in mid-October, his second trip in less than a month, as the two sides fast-track talks for a trade deal with the aim of concluding them before Prime Minister Narendra Modi’s visit to Canada in December, people aware of the matter said.

Goyal visited Canada during May 25-27 with a large Indian business delegation comprising industry leaders from more than 100 companies in a step towards the full revival of India-Canada economic relations, the people said. (PTI)

Sidhu is expected to meet commerce minister Piyush Goyal in New Delhi soon after the fifth round of negotiations on the India-Canada comprehensive economic partnership agreement (CEPA), scheduled to be held in Canada from October 5, the people said, requesting anonymity.

Ahead of Sidhu’s visit, commerce secretary Rajesh Agrawal may also meet senior Canadian trade officials in Canada while travelling to Mexico, they said. India is separately engaged with Mexico to negotiate a bilateral trade deal.

Sidhu’s visit, expected around October 15, will coincide with a trip to India by a large Canadian trade mission to explore commercial and investment opportunities, the people familiar with the planning on both sides said.

“Obviously, with a trade deal, it isn’t done until there is agreement on all issues. But both sides are intent on concluding the negotiations as soon as possible,” one person said.

The people said most key issues related to the proposed CEPA have been resolved by officials on both sides, with political-level interventions now required to iron out contentious matters that require ministerial authority.

Modi is set to travel to the US, Canada and Belgium around mid-December. While he will attend the G20 Summit in the US, he is expected to visit Canada and Belgium to push trade ties. The India-EU free trade agreement is expected to be signed during his Belgium visit.

Quoting Goyal, HT reported on Friday that the India-Canada CEPA negotiations will soon get “political heft” as the two ministers will be closely involved in the talks. He said this days after his meeting with Sidhu in Mumbai. That meeting was held immediately after the two sides finished their fourth round of talks in New Delhi during September 14-18.

At his meeting with Goyal in Mumbai, Sidhu said he looked forward to leading a Canada trade mission to India in October to deepen bilateral commercial partnerships and create new opportunities for Canadian businesses.

In Mumbai, Sidhu also met business leaders representing Mahindra & Mahindra, Bajaj Integrated Health System, JSW group and CAE to explore opportunities for collaboration in areas such as life sciences, clean technologies, energy transition and aerospace.

Earlier, Goyal visited Canada during May 25-27 with a large Indian business delegation comprising industry leaders from more than 100 companies in a step towards the full revival of India-Canada economic relations, the people said.

Both sides are working overtime to finalise the trade deal before December, aiming to raise two-way trade to $70 billion by 2030. Bilateral goods and services trade between India and Canada in 2025 was $30.4 billion, with merchandise trade contributing $13.6 billion.

This has coincided with an improvement in the overall bilateral relationship, which had fallen to its lowest level in decades after former Canadian prime minister Justin Trudeau accused Indian government agents of involvement in the 2023 killing of Khalistani separatist Hardeep Singh Nijjar. India dismissed the allegation and both sides resorted to a number of punitive actions.

Following Mark Carney’s election as Canada’s PM in 2025, both sides worked swiftly to repair ties. Canada is also keen to bolster economic relations with countries such as India amid its trade tensions with the US.

The people said the potential is quite high as India can purchase energy from Canada in large quantities. Canada currently exports goods such as vegetables, mineral fuels and oils, and wood pulp to India worth $3.9 billion. It imports Indian merchandise worth $9.7 billion, including precious stones, metals, machinery and pharmaceuticals.

India and Canada launched the CEPA negotiations in New Delhi on March 2 after Goyal and Sidhu signed the terms of reference in the presence of PMs Modi and Carney. The negotiations have moved swiftly since then, and the first round of virtual talks was held in March 2026, followed by the second round in New Delhi during May 4-8, and the third round in Ottawa during July 6-10.