India and Canada have formally launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA), signing the Terms of Reference (ToR) at Hyderabad House in the presence of Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney. The two nations aim to scale bilateral trade to $50 billion by 2030 through deeper economic engagement.

BulletsIn

• India and Canada formally launched CEPA negotiations with signing of Terms of Reference (ToR).
• ToR signed by Commerce Minister Piyush Goyal and Canada’s Trade Minister Maninder Sidhu.
• Ceremony held at Hyderabad House in presence of PM Narendra Modi and PM Mark Carney.
• Both leaders set ambitious target of $50 billion bilateral trade by 2030.
• CEPA aims to unlock full potential of trade and economic cooperation.
• Talks expedited after leaders’ meeting at G7 Summit in Kananaskis, October 2025.
• Agreement to cover trade in goods, services, and other mutually agreed sectors.
• ToR outlines structure, frequency, and negotiation framework for balanced pact.
• Bilateral trade stood at $8.66 billion in FY 2024-25.
• India exported $4.22 billion worth goods; imports from Canada at $4.44 billion.
• Key Indian exports: pharmaceuticals, iron and steel, seafood, garments, electronics, chemicals.
• Major imports from Canada: pulses, coal, fertilisers, crude petroleum, paper, precious stones.
• Services exports led by telecom, IT, computer and business services sectors.
• Deeper market access expected to boost Indian services industry.