India, Canada Push to Finalise CEPA Trade Deal as Modi and Carney Discuss Bilateral Ties

India and Canada are accelerating efforts to finalise a comprehensive trade agreement as Narendra Modi and Mark Carney discuss economic cooperation, energy, technology and security priorities.

India and Canada Aim to Finalise Comprehensive Trade Agreement

India and Canada have renewed their commitment to conclude negotiations on a Comprehensive Economic Partnership Agreement (CEPA) as both countries seek to strengthen their economic and strategic relationship.

Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney discussed ways to expand cooperation in trade, energy, technology and security during a telephone conversation on Tuesday. According to a statement from the Canadian Prime Minister’s Office, the proposed agreement is expected to support the goal of doubling bilateral trade by 2030.

Modi described the conversation as “warm and productive” in a post on X, expressing confidence that both countries could achieve tangible progress across key areas of their partnership.

Trade and Economic Cooperation Take Centre Stage

Canadian Trade Delegation Visits India

The renewed discussions come amid increased engagement between the two countries on economic matters. A Team Canada Trade Mission, led by Canadian Minister of International Trade Maninder Sidhu, is visiting India to explore opportunities for closer commercial cooperation.

Canadian Foreign Affairs Minister Anita Anand is also visiting New Delhi this week. Her discussions are expected to cover shared priorities, including trade, energy and people-to-people connections.

These engagements reflect efforts by both governments to strengthen economic ties and advance negotiations on the proposed CEPA.

CEPA Expected to Support Bilateral Trade Growth

The comprehensive trade agreement is intended to improve economic cooperation and create opportunities for businesses in both countries. The target of doubling bilateral trade by 2030 is a key objective associated with the ongoing negotiations.

Earlier this month, India’s National Security Adviser Ajit Doval met David Morrison, senior diplomatic and international affairs adviser to the Canadian Prime Minister, in New Delhi. Both officials welcomed efforts to move the trade negotiations forward.

The proposed agreement remains an important part of the broader effort to rebuild relations and establish a stronger foundation for long-term economic engagement.

Leaders Discuss Energy, Agriculture and Global Challenges

During their conversation, Modi and Carney also addressed geopolitical uncertainty in the Indo-Pacific and the need for dependable international partners in sectors such as energy and agriculture.

According to the Canadian statement, Carney thanked Modi for his leadership in pursuing a peaceful resolution to Russia’s war on Ukraine.

The discussions indicate that the bilateral relationship extends beyond trade, with both governments seeking greater coordination on strategic and international issues.

Cooperation in technology, finance, defence and artificial intelligence has also emerged as an important area of engagement, alongside efforts to strengthen people-to-people connections.

India and Canada Strengthen Security Cooperation

Security Officials Review Joint Work Plan

The leaders’ conversation followed security discussions between Doval and Morrison in New Delhi on October 6. Morrison visited India from October 5 to 7 as part of the ongoing bilateral security dialogue at the National Security Adviser level.

According to India’s Ministry of External Affairs, the two sides reviewed progress in security and law enforcement cooperation, including implementation of a shared Security Work Plan concluded in February 2026.

The officials agreed to deepen cooperation on several cross-border security challenges and explore additional mechanisms for regular engagement.

Focus on Terrorism, Cybercrime and Organised Crime

The discussions covered cooperation against transnational organised crime, terrorism, violent extremism, human trafficking, drug trafficking, cybercrime and extortion.

Both sides also discussed the extradition of criminal offenders and the possibility of establishing structured dialogues on cybersecurity and economic security.

In addition, the officials explored ways to develop a more substantive bilateral defence relationship. Previous security discussions at the NSA level were held in New Delhi in September 2025 and Ottawa in February 2026.

The latest dialogue signals an effort to strengthen institutional cooperation as the two countries work to rebuild trust.

India-Canada Relations Recover After Diplomatic Disputes

Tensions Emerged in 2023

Relations between India and Canada deteriorated in 2023 after then Canadian Prime Minister Justin Trudeau alleged a potential Indian link to the killing of Khalistan separatist Hardeep Singh Nijjar in Canada. India rejected the allegation as “absurd”.

Diplomatic tensions intensified in October 2024, when India recalled its high commissioner, Sanjay Kumar Verma, and five other diplomats after Ottawa sought to link them to the Nijjar investigation. India also expelled an equal number of Canadian diplomats.

The dispute significantly affected bilateral engagement and created challenges for cooperation across several areas.

Both Countries Work to Rebuild Diplomatic Ties

Relations have gradually improved under Carney, whose Liberal Party won Canada’s parliamentary election in April 2025. Both countries have since posted high commissioners in each other’s capitals.

Carney’s visit to India in March 2026 represented another step towards restoring diplomatic engagement and rebuilding the relationship.

The latest telephone conversation between the two prime ministers further reflects their willingness to maintain dialogue and pursue shared interests.

Modi’s Planned Canada Visit Could Advance Bilateral Priorities

Modi and Carney have agreed to remain in close contact ahead of the Indian Prime Minister’s planned visit to Canada in December.

The visit could provide an opportunity to advance discussions on the CEPA, bilateral trade, energy cooperation, technology and security. It may also help both governments identify practical steps to strengthen business ties and address outstanding diplomatic concerns.

The progress of trade negotiations will remain particularly important as both countries pursue their target of doubling bilateral trade by 2030.

Conclusion

India and Canada are seeking to strengthen economic and strategic relations through renewed diplomatic engagement, trade negotiations and security cooperation. Finalising the CEPA could support their bilateral trade ambitions, while continued dialogue may help consolidate the gradual improvement in relations.