India Ready for Investment Treaty Talks With Canada, Sets Sights on ₹4.65 Lakh Crore Trade by 2030
India has signalled its readiness to begin negotiations with Canada on a Bilateral Investment Treaty (BIT) at the earliest, marking another major step in the renewed economic engagement between the two countries. The announcement came after the first India–Canada Finance Ministers’ Economic and Financial Dialogue between Finance Minister Nirmala Sitharaman and her Canadian counterpart François-Philippe Champagne.
The two countries have simultaneously set an ambitious target of expanding bilateral trade to CAD 70 billion, equivalent to about ₹4.65 lakh crore, by 2030. The target represents a major expansion from current trade levels and reflects a broader attempt by New Delhi and Ottawa to rebuild their economic relationship.
A Bilateral Investment Treaty would provide a framework governing investments between the two countries, including greater certainty and protection for investors. India’s willingness to open negotiations is significant because investment rules have become an important part of the broader effort to deepen economic ties beyond conventional merchandise trade.
The investment discussions are taking place alongside negotiations for a much broader Comprehensive Economic Partnership Agreement (CEPA). India and Canada have committed themselves to completing the CEPA negotiations by the end of 2026, potentially creating a more comprehensive framework covering goods, services, investment and other areas of economic cooperation.
The latest financial dialogue therefore represents more than a routine ministerial meeting. It establishes a new institutional mechanism for discussing macroeconomic conditions, financial-sector cooperation, investment and shared international economic priorities between the two countries.
Canadian pension funds and other institutional investors already have a substantial presence in India. The two finance ministers discussed ways to facilitate greater engagement between financial institutions and institutional investors, potentially opening the door to additional Canadian capital flowing into Indian infrastructure, technology, energy and other sectors.
Financial technology is another emerging area of cooperation. India and Canada are exploring greater collaboration on payment modernisation, including possibilities for expanding the use of India’s Unified Payments Interface, or UPI, through partnerships with Canadian payment-service providers.
If implemented, wider UPI integration could make cross-border merchant payments and remittances faster and cheaper. It could also benefit tourism, education and small businesses that increasingly depend on international digital payments.
The two countries are also looking at cooperation in critical minerals. This has strategic importance because governments worldwide are attempting to secure reliable supplies of minerals needed for batteries, electric vehicles, renewable-energy systems, advanced manufacturing and other emerging technologies.
Energy, artificial intelligence, technology, infrastructure and natural resources are also being identified as areas with potential for stronger commercial cooperation. Sitharaman’s current Canada visit includes meetings with businesses and investors from several of these sectors.
The push for closer economic ties follows a significant political reset. Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney agreed in March 2026 to strengthen bilateral economic and financial cooperation and revive negotiations toward a comprehensive trade agreement.
The CEPA process has already moved beyond preliminary discussions. India and Canada completed their second round of negotiations in May, covering areas including goods, services, intellectual property, rules of origin, sanitary and phytosanitary measures and technical barriers to trade.
The economic opportunity remains substantial despite relatively modest current trade. India’s merchandise trade with Canada was around US$8 billion in 2025–26, with Indian exports at approximately US$4.67 billion and imports at about US$3.28 billion. Reaching CAD 70 billion by 2030 would therefore require a dramatic expansion in two-way commerce.
For India, Canada offers access to capital, energy resources, critical minerals, technology and a developed market. For Canada, India represents one of the world’s fastest-growing major economies and an opportunity to diversify trade and investment relationships.
The timing is also notable because Canada is seeking to strengthen economic relationships beyond its traditional dependence on the United States. Recent difficulties in Canada-US trade negotiations have added pressure on Ottawa to diversify international commercial partnerships, although the India-Canada economic reset has its own independent strategic logic.
The biggest test will now be implementation. Completing the CEPA negotiations, launching BIT negotiations and converting the ₹4.65-lakh-crore trade ambition into actual investment and commerce will require both sides to resolve difficult questions involving market access, investment protection, regulations and sectoral sensitivities.
If the two governments can maintain the current momentum, the relationship could shift from one dominated by diplomatic tensions to one increasingly anchored in trade, investment, finance, technology and strategic supply chains. The newly established finance dialogue is expected to continue, with the next meeting scheduled for 2027.
