India and Canada have reaffirmed their commitment to finalize a comprehensive trade agreement by the end of 2026. This announcement came after the inaugural India-Canada Finance Ministers’ Economic and Financial Dialogue held in Toronto. The dialogue was attended by Finance and Corporate Affairs Minister Nirmala Sitharaman and Canadian Minister of Finance and National Revenue.
The joint statement issued by the two ministers emphasized India's eagerness to commence negotiations on a Bilateral Investment Treaty as soon as possible. This move is seen as a step towards bolstering economic and financial ties between the two nations. The dialogue builds on commitments made by the Prime Ministers of both countries during their meeting in New Delhi in March 2026, where they agreed to enhance bilateral cooperation and aim to conclude the Canada-India Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026.
A key focus of the discussions was the potential to expand bilateral trade significantly. The ministers expressed a shared aspiration to increase trade to ₹4.65 lakh crore by 2030, a substantial rise from ₹70,354 crore recorded in 2025-26. They also explored ways to facilitate greater engagement between Indian and Canadian financial institutions and investors, identifying commercially viable investment opportunities across sectors of mutual interest.
The dialogue covered a range of financial-sector issues, including payments modernization, financial stability, FinTech innovation, and capital markets development. Efforts to combat financial crime were also on the agenda. At a subsequent press conference, Ms. Sitharaman highlighted the growing importance of bilateral engagements in the current global economic climate, noting that such relationships can better match each country's potential and challenges.
Ms. Sitharaman also underscored the significance of Canadian pension funds, which are already major investors in India. She advocated for increased investments from these funds, pointing out the vast opportunities available in India's infrastructure and emerging sectors such as green ammonia, hydrogen, advanced battery storage, space, and modular nuclear reactors.
“The Canadian pension fund has been very much engaged with India, ” Ms. Sitharaman remarked. “We would like more of them to be here with us because, since 2020, just before COVID-19 started, we put out a complete list of the national pipeline for asset monetization in India. And that has become a very growing pipeline of investment opportunities for those who are seeking higher returns on their investments.”
Officials from GIFT City and the National Infrastructure Investment Fund (NIIF) accompanied Ms. Sitharaman to Canada to engage directly with Canadian funds, further emphasizing the potential for collaboration. The dialogue and subsequent discussions reflect a mutual understanding of the benefits of strengthening economic ties, with both countries poised to gain from increased trade and investment.
