India and Canada to Conclude CEPA by November — PM Carney Calls Comprehensive Trade Deal a ‘Game Changer’ for Both Nations
Historic Trade Agreement Takes Shape as Both Nations Commit to November Deadline
India and Canada have agreed to conclude the long-awaited Comprehensive Economic Partnership Agreement by November 2026, marking a significant thaw in bilateral relations that had been strained over the past three years. The announcement came after Canadian Prime Minister Mark Carney described the proposed CEPA as a game changer for both nations following his meeting with Indian Commerce and Industry Minister Piyush Goyal on the sidelines of a bilateral trade and investment forum in Ottawa.
Minister Goyal, who is in Canada for a series of bilateral meetings and investor outreach sessions, said both sides had made substantial progress on key chapters of the agreement, including market access for goods, services trade, investment protection, digital commerce and intellectual property rights. The minister indicated that the political will to conclude the deal exists on both sides and that negotiators have been tasked with resolving remaining contentious issues within the agreed timeline.
What the CEPA Covers and Why It Matters
The India-Canada CEPA is envisioned as a comprehensive trade agreement covering goods, services, investment, government procurement, competition policy and sustainable development. Bilateral trade between India and Canada stood at approximately 8.3 billion US dollars in the fiscal year 2025-26, a figure that both governments believe can be tripled within five years of the agreement coming into force.
For India, the CEPA opens significant opportunities in Canada’s services sector, particularly in information technology, professional services and education. Indian IT companies have been seeking improved market access in Canada, and the CEPA is expected to include provisions for temporary movement of professionals, mutual recognition of qualifications and simplified visa procedures for business travellers. The agreement could also boost Indian pharmaceutical exports to Canada, which currently face regulatory barriers that limit market penetration.
Canada stands to benefit from improved access to India’s large and growing consumer market, particularly in sectors such as clean energy technology, agricultural products, mining equipment and financial services. Canadian investors have been keen to participate in India’s renewable energy expansion, and the CEPA is expected to include robust investment protection provisions that would encourage greater Canadian foreign direct investment in Indian clean energy projects.
Goyal Woos Canadian Investors in Clean Energy and AI
During his visit, Minister Goyal held a series of bilateral meetings with Canadian business leaders to discuss investment opportunities in India across multiple sectors. The minister specifically invited Canadian companies to partner with India in clean energy, artificial intelligence, critical minerals processing and advanced manufacturing, highlighting the Indian government’s Production Linked Incentive schemes and the newly expanded National Green Hydrogen Mission as key investment attractors.
The clean energy pitch is particularly timely given the global push for energy transition and India’s ambitious target of achieving 500 gigawatts of non-fossil fuel energy capacity by 2030. Canada, which possesses significant reserves of critical minerals essential for battery production and renewable energy equipment, could become a key supply chain partner for India’s green industrialisation agenda.
On the artificial intelligence front, Goyal highlighted India’s emergence as a global AI talent hub and invited Canadian tech companies to establish research and development centres in India. The minister pointed to the recent announcement of global conversations around AI governance as evidence that India and Canada could collaborate on developing ethical AI frameworks that balance innovation with responsible deployment.
Diplomatic Reset After Years of Tension
The acceleration of CEPA negotiations represents a broader diplomatic reset between India and Canada, which saw relations deteriorate sharply in 2023 over allegations by Canada regarding Indian government involvement in the killing of a Sikh separatist leader on Canadian soil. India denied the allegations and expelled Canadian diplomats, leading to a significant downgrade in bilateral engagement that affected trade talks, educational exchanges and people-to-people contact.
The election of Mark Carney as Canadian Prime Minister earlier in 2026 provided an opportunity for both sides to recalibrate the relationship. Carney, a former Governor of the Bank of Canada and the Bank of England, has taken a more pragmatic approach to India relations, emphasising economic engagement and mutual interests over political disputes. His description of the CEPA as a game changer signals a clear intention to prioritise the trade relationship as the centrepiece of the bilateral reset.
Indian diplomatic sources indicate that while sensitive political issues have not been entirely resolved, both governments have agreed to compartmentalise these matters and allow the economic relationship to move forward independently. The Quad Foreign Ministers’ meeting in New Delhi earlier this week, which included discussions on supply chain resilience and critical minerals, also provided a multilateral backdrop for the India-Canada bilateral engagement.
Industry Reactions and Market Impact
Indian industry bodies have welcomed the CEPA timeline, with the Confederation of Indian Industry describing the agreement as potentially transformative for small and medium enterprises seeking to expand into the North American market. The Federation of Indian Export Organisations said the CEPA could add 3 to 4 billion US dollars in annual merchandise exports to Canada within the first three years, particularly in textiles, gems and jewellery, automotive components and processed food products.
The Indian stock markets, which have been navigating global uncertainties related to the Iran situation and crude oil price volatility, could receive a positive boost from the CEPA announcement as it signals diversification of India’s trade partnerships beyond traditional partners.
However, some domestic industry groups have expressed concerns about the impact of increased Canadian agricultural imports, particularly pulses and oilseeds, on Indian farmers. The government has indicated that the CEPA will include appropriate safeguards and transition periods for sensitive agricultural products to ensure that Indian farming interests are protected.
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