India and Canada have agreed to deepen investment and financial cooperation while targeting CAD 70 billion in bilateral trade by 2030.
Treaty talks could strengthen investment ties
India has expressed its readiness to begin negotiations with Canada on a Bilateral Investment Treaty at the earliest, marking another important step in the revival of economic relations between New Delhi and Ottawa.
The proposal was discussed during the inaugural Canada-India Finance Ministers’ Economic and Financial Dialogue involving Union Finance Minister Nirmala Sitharaman and Canadian Finance and National Revenue Minister François-Philippe Champagne.
A bilateral investment treaty could establish clearer rules and protections for investors from both countries while creating a more predictable environment for long-term capital. The ministers discussed the importance of domestic tax laws that provide stability and certainty to taxpayers regarding their investments.
The meeting followed commitments made by Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney during their New Delhi talks in March 2026. The two leaders agreed to strengthen economic cooperation and seek completion of the Comprehensive Economic Partnership Agreement negotiations by the end of 2026.
Trade target set at CAD 70 billion by 2030
Sitharaman and Champagne reaffirmed the shared ambition of expanding bilateral trade to CAD 70 billion, equivalent to approximately ₹4.65 lakh crore, by 2030. The wider target covers growing economic engagement between the two countries, while a separate goal aims to raise merchandise trade to USD 50 billion by the same year.
India-Canada merchandise trade stood at approximately USD 8 billion during 2025-26. India exported goods worth around USD 4.67 billion to Canada and imported products valued at approximately USD 3.28 billion.
Both countries see significant opportunities to increase trade in energy, technology, artificial intelligence, agriculture, infrastructure and critical minerals. Canadian pension funds already maintain a substantial investment presence in India, and the ministers discussed measures to improve engagement between financial institutions and institutional investors.
The proposed investment treaty and the CEPA are separate negotiating tracks. While the investment treaty would primarily provide a framework for protecting cross-border investments, the broader trade agreement is expected to address market access, goods, services and other commercial issues.
Payments cooperation could expand UPI in Canada
Financial technology and digital payments formed another major part of the discussions. The two ministers explored deeper cooperation in payments modernisation, financial stability, capital markets, FinTech innovation and measures to combat financial crime.
India and Canada agreed to encourage engagement between the relevant regulators, financial institutions and other stakeholders on cross-border remittances and merchant payments. They also welcomed opportunities to broaden the use of India’s Unified Payments Interface in Canada through partnerships with payment-service providers.
Expanded UPI access could make eligible payments and remittances faster, more convenient and less expensive. Such cooperation may particularly benefit Indian students, tourists, small businesses and families that regularly transfer money between the two countries.
The proposal remains at the partnership and engagement stage. Its eventual reach will depend on agreements with Canadian payment companies, regulatory approvals, technical integration and participation by financial institutions.
Cooperation focuses on strategic industries
The finance ministers recognised that resilient and diversified supply chains are becoming increasingly important amid global economic uncertainty. They agreed to pursue closer cooperation in strategic sectors, including critical minerals, which are essential for clean energy, electronics and advanced manufacturing.
Following the formal dialogue, Sitharaman and Champagne met representatives from Canada’s financial services, FinTech, technology, AI, infrastructure, energy and natural-resources industries. The discussions highlighted potential investment opportunities and ways to build stronger links among businesses and financial institutions.
The ministers committed to maintaining regular dialogue and pursuing concrete outcomes in areas of shared interest. The next Canada-India Economic and Financial Dialogue is scheduled for 2027.
The latest discussions signal that the two countries are moving beyond the restoration of diplomatic engagement towards a more structured economic partnership. Progress will ultimately depend on the timely conclusion of treaty negotiations and the implementation of measurable trade, investment and payment initiatives.
