Thu, Jun 19, 2025
G7: PM Modi's Canada Visit May Set The Ground For Resuming Bilateral Trade Talks
India-Canada trade talks have been stalled. PM Modi's visit to Canada, after 10 years, marks a positive shift in ties between the two countries
Jun 17, 2025 · 2 min read
Prime Minister Narendra Modi’s Canada visit to participate in the G7 Summit is being closely monitored. While it signifies a shift in bilateral relations, as both nations are now looking to switch gears in their mutual engagement, sources said the meeting could set the ball rolling for a resumption of negotiations for a free trade agreement (FTA) with Canada.
Earlier, talks over an India-Canada FTA were stalled in September 2023, following a slide in bilateral ties under former Canadian PM Justin Trudeau.
“Though talks on a trade agreement may not start immediately, PM Modi’s visit is a step towards normalising the situation. Once that happens, we can get back to business,” Ajay Sahai, Director-General, Federation of Indian Export Organisation (FIEO) told The Secretariat.
“The trade potential between the two countries is huge, and the current data does not reflect that,” he added.
With the US's tariff plans clouded in uncertainty, India is now aggressively looking to diversify its export markets. India and the UK signed an FTA on May 6. Sources said that the UK FTA will serve as a template for other trade pacts that New Delhi is looking to ink.
India-Canada Bilateral Trade
Bilateral trade between India and Canada stood at US$ 8.37 billion in 2023-24, a tad higher than US$ 8.27 billion in FY23.
In fact, India’s exports to Canada fell during that one year. India’s exports to Canada are estimated to have been US$ 3.84 billion in FY24, while it was US$ 4.10 billion in FY23. India’s main exports to Canada include pharmaceutical products, machinery equipment, and iron and steel.
After 2015, this is Modi’s first trip to Canada. US President Donald Trump’s reciprocal tariff plan has led to a rise in geoeconomic uncertainties.
Though several countries are now looking to ink bilateral trade agreements with the US, Trump’s policies have become a serious cause for concern for most world economies.
Soon after taking over as President, he slapped an additional 25 per cent tariff on Canada and Mexico. “President Trump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country,” a statement by the White House had then said.
Other Bilateral Meetings
Besides India-Canada dynamics, what's expected to make headlines in Calgary are the outcomes of bilateral meetings that PM Modi plans to hold with the heads of state of Italy, Ukraine, Germany, etc.
A trade agreement between India and Canada will bring cheer to the country’s exporters.
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