India and Canada are working towards more than doubling bilateral trade to $50 billion by 2030, as both countries look to deepen economic cooperation, expand market access and encourage long-term investment. Finance Minister Nirmala Sitharaman, speaking in Toronto alongside Canadian Finance and National Revenue Minister Francois-Philippe Champagne, said the two countries are focusing on creating greater predictability and trust for businesses operating across both markets.
Bilateral trade between India and Canada stood at $7.96 billion in FY2025-26. The $50-billion target, agreed during Prime Minister Narendra Modi’s visit to Canada last year, would represent a substantial expansion of commercial ties over the coming years.
A key element of this ambition is the proposed India-Canada Free Trade Agreement (FTA). Negotiations are underway, with both countries aiming to conclude the agreement by the end of 2026. The proposed deal is expected to improve market access and provide businesses with a more stable framework for expanding trade and investment.
Speaking at a fireside chat, Sitharaman highlighted the growing importance of predictability and trust in global trade. With businesses facing geopolitical uncertainty and changing economic conditions, she said countries need to work together to ensure that trade can continue smoothly. India and Canada have already identified several areas where improved market access could support greater bilateral commerce.
Canadian Finance and National Revenue Minister Champagne also described the two economies as complementary, particularly as economic, energy and food-security interests become increasingly interconnected. He pointed to the broader relationship between food security, energy security, economic security and national security, suggesting that closer economic cooperation could strengthen the resilience of both countries.
Investment is another important component of the expanding relationship. India and Canada are exploring a financial investment protection agreement, which could provide additional certainty to investors and encourage greater cross-border capital flows.
Canadian investment into India has also increased significantly in recent years. Canada was India’s 16th-largest source of foreign direct investment in FY2025-26, while cumulative Canadian FDI into India reached approximately $4.33 billion since April 2000, according to data from the Department for Promotion of Industry and Internal Trade.
Canadian financial services company Fairfax has also reportedly submitted a bid to acquire a 60% stake in IDBI Bank, which is currently part of the Indian government’s strategic disinvestment process. Such investment interest reflects the growing engagement of Canadian businesses with India’s financial and wider economic ecosystem.
For India, deeper Canadian investment could bring additional capital, technology, expertise and employment opportunities, while Indian businesses could gain from greater access to Canadian markets. A comprehensive trade agreement could further strengthen these commercial linkages.
Sitharaman also encouraged Canadian companies to remain actively engaged with the Indian government and said efforts would continue to improve the ease of doing business and create a more seamless environment for foreign investors.
The proposed FTA and investment protection agreement therefore represent important pillars of the countries’ efforts to expand economic cooperation. If negotiations progress as planned, the agreements could provide greater certainty for businesses and support stronger trade and investment flows.
With bilateral trade currently at $7.96 billion and an ambitious $50-billion target for 2030, India and Canada are seeking to significantly reshape the scale of their economic partnership over the next few years.
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