Few would have imagined that India and Canada could sign a Free Trade Agreement (FTA) in less than two years of the new government coming to power in Ottawa. 

Who would have imagined that two Canadian Cabinet Ministers - Foreign Minister Anita Anand and International Trade Minister Maninder Sidhu - would visit India simultaneously to boost ties and prepare for Prime Minister Narendra Modi’s trip in December.

Besides, the spotlight is on the 300 plus members of the Canadian business community – clearly the largest trade delegation to be vising India in over 30 years. The delegation led by Trade Minister Sidhu has business interests in areas such as aerospace and space, clean technologies, and energy transition, information and communication technologies, life sciences, and agri-food sectors. Canadian Foreign Minister Anand through her engagements made it clear that India is a topmost priority for her Prime Minister Mike Carney.

Existing Commercial And Investment Ties

Canada is aiming to double exports to markets beyond the US over the next decade, including doubling two-way trade with India to $ 70 billion annually by 2030. In 2025, goods and services trade between the two countries totalled $ 30.4 billion, of which $ 11.0 billion was in goods.

 In 2025, Canadian merchandise exports to India totalled $ 3.9 billion, driven by vegetables, mineral fuels and oils, and wood pulp. Merchandise imports from India amounted to $ 9.7 billion, primarily consisting of precious stones and metals, machinery, and pharmaceutical products.

In 2025, Indian service exports were valued at $ 15.1 billion. Based on 2024 data, education-related travel made up for the largest share of total services exported, accounting for 6.3% of Canada’s total service exports. In 2025, service imports from India totalled $ 4.3 billion and represented 1.9% of Canada’s total service imports.

 In 2024, multinational enterprises from India employed 37,902 people through their affiliates in Canada. In 2024, multinational enterprises from Canada employed 68,941 people through their affiliates in India.

As reported by Export Development Canada, in 2025, Canadian pension funds and asset managers reported approximately $ 108 billion in total exposure to India, which included portfolio holdings, direct investments and other investment vehicles deployed across multiple sectors of India’s economy.

Canadian direct investment to India touched $ 11.4 billion in 2025, with the top sectors being finance and insurance, utilities, and real estate (rentals and leasing). In 2025, Indian foreign direct investment (FDI) into Canada totalled $ 9.7 billion, with the top sectors being finance and insurance, professional, scientific and technical service, transportation equipment, and manufacturing. Portfolio investments underscore the interest in India as a favourable investment destination. 

More than 600 Canadian companies have a presence in India, and more than 1,000 companies are actively pursuing business in the Indian market. Indian companies in Canada operate across various sectors, including IT (Information Technology), banking, pulp and fibre, natural resources, health science and financial services, among others.

Launched in 2022, Canada’s Indo-Pacific Strategy commits to advancing five strategic objectives: security, trade, sustainability, people-to-people ties and regional engagement. It reflects Canada’s commitment to inclusive growth and partnerships with Indo-Pacific economies that create shared prosperity. Clearly, India is a key pillar of Canada’s Indo-Pacific strategy.

Energy And Critical Minerals

During Carney’s meeting with Modi in New Delhi in March 2026, the two underscored facilitating the expansion of bilateral energy trade across key sectors, including liquefied natural gas (LNG), liquefied petroleum gas (LPG), crude oil, refined petroleum products, potash, and uranium supply offtakes. There is a significant potential to expand bilateral energy trade, including increased imports of oil and LNG by India from Canada and the supply of refined petroleum products from New Delhi to Ottawa.

Separately, India and Canada have signed a Memorandum of Understanding (MoU) on Clean Energy Cooperation, establishing a comprehensive institutional framework to advance bilateral collaboration across solar, wind, bioenergy, small hydro, energy storage and capacity-building. The MoU aims to foster a mutually beneficial clean energy partnership.

Canada wants to pursue membership in the International Solar Alliance (ISA) to enhance international cooperation in solar deployment, innovation and capacity-building, particularly in developing and climate-vulnerable regions.

India and resource rich Canada have agreed to deepen cooperation on critical minerals and energy transition pathways. This year an MoU was signed on critical minerals cooperation, reflecting a shared commitment to building resilient, secure, and diversified critical minerals supply chains. India also endorsed the G7 Critical Minerals Action Plan, which promotes diversified and responsible production and supply of critical minerals and encourages investment and innovation across value chains essential for clean energy, advanced manufacturing, and technology.

Road Ahead

The previous Justin Trudeau rule can be considered the lost years, guided by extremists and the vote bank. India-Canada ties are now on a positive swing. Canadian politicians need to display consistency and maturity as Indian markets and talent would be key to their economic growth in the coming decades amid downturn in Ottawa’s ties with the US. 

US-Canada ties may never reach the depth it once enjoyed. New Delhi can be Canada’s road to continuous prosperity in a win-win partnership.    

(The writer is a commentator on geopolitics and geoeconomics. Views expressed are personal.)