India-Canada CEPA 2026, Key Areas, Significance, Latest News

India and Canada are negotiating a proposed Comprehensive Economic Partnership Agreement (CEPA), with both sides aiming to conclude the negotiations by the end of 2026. The fourth round of talks was held in New Delhi in September 2026, covering goods, services, rules of origin and technical barriers to trade.

India-Canada Trade

• Bilateral merchandise trade: According to Indian trade data, India-Canada two-way merchandise trade was about US$7.95 billion in FY 2025-26, compared with US$8.66 billion in FY 2024-25.
• India’s exports to Canada: US$4.67 billion in FY 2025-26, up from US$4.22 billion in FY 2024-25.
• India’s imports from Canada: US$3.28 billion in FY 2025-26, down from US$4.44 billion in FY 2024-25.
• Canada’s data: Canada reported two-way merchandise trade of about US$10.9 billion in 2025, with Canadian exports to India at US$3.9 billion and imports from India at US$7 billion. Differences with Indian figures arise from differences in reporting methods and periods.
• Trade target: India and Canada have set a target of raising bilateral trade to US$50 billion by 2030. Canada has separately stated an ambition to more than double two-way trade to C$70 billion annually by 2030.

Major Areas Covered Under CEPA

The proposed India-Canada CEPA covers trade in goods and services, investment and regulatory issues, with the broader aim of reducing trade barriers and creating a more predictable environment for businesses in both countries.

• Trade in Goods and Market Access: Negotiations focus on reducing or eliminating tariffs and improving market access for products such as pharmaceuticals, textiles, engineering goods, agricultural products, pulses, chemicals and other manufactured goods.
• Trade in Services and Mobility: The agreement covers greater opportunities in IT, telecommunications, professional and business services, along with rules related to the movement of professionals and business persons between the two countries.
• Agriculture, SPS and Technical Standards: Both sides are discussing agricultural market access along with Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT) to address food-safety requirements, product standards, testing and certification issues.
• Rules of Origin and Customs: Rules of origin will determine which products qualify for preferential tariffs, while customs and trade-facilitation provisions can make cross-border movement of goods faster and more transparent.
• Investment and Intellectual Property: The CEPA seeks to provide a more predictable environment for investors and address issues related to intellectual property protection, innovation and technology-based trade.
• Digital Trade and Sustainable Development: The negotiations also include emerging areas such as digital trade, electronic commerce and sustainable development, reflecting the changing nature of international trade.

‹ ›

Canada-India Services Trade

Services are an important part of the economic relationship, particularly because of India’s large IT and professional-services sector and Canada’s education sector.

Canada’s services exports to India were C$15.6 billion in 2024, driven largely by education-related travel. Canada’s services imports from India were C$3.8 billion, with commercial services forming the major component.

Importance of Canada for India

Canada is important for India not only as a trading partner but also because of its natural resources, education sector, investment opportunities and large Indian-origin community.

• Canada can provide India with pulses, critical minerals, energy resources and agricultural products.
• Greater access to the Canadian market can benefit Indian pharmaceutical, textile, engineering, electronics and IT-service companies.
• Canada offers opportunities for Indian companies seeking to expand into the North American market.
• Strong education and people-to-people links provide an additional foundation for economic cooperation.
• Canada has a large Indian-origin population, strengthening business, cultural and educational connections between the two countries.

India-Canada CEPA 2026 Significance

The proposed CEPA can provide a structured framework for expanding trade, investment and services between the two countries. For India, it can improve access to the Canadian market and support exports in pharmaceuticals, manufacturing and services, while Canada can gain greater access to India’s large and growing market. The agreement is therefore being negotiated as part of a broader effort to deepen the economic relationship.