The ToR will provide the format, frequency, and approach for the CEPA negotiations. In a statement, the Commerce Ministry said the framework will serve as a guide to facilitate an ambitious, balanced, and mutually beneficial agreement.
The negotiations will cover trade in goods, services, and other mutually agreed policy areas. Canada represents a market of 41.65 million people (2025) with a GDP (PPP) of $2.34 trillion. According to DGCI&S data, bilateral trade stood at $8.66 billion in FY 2024-25, with exports worth $4.22 billion and imports worth $4.44 billion.
Key Indian exports to Canada include pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods, and chemicals. Major imports from Canada include pulses, pearls and semi-precious stones, coal, fertiliser, paper, and crude petroleum. Key services exports from India include telecommunications, computer and information services, and other business services. These sectors hold significant growth potential and are expected to expand further following the conclusion of the CEPA.
During the ceremony, PM Modi set a bilateral trade target of $50 billion by 2030. PM Carney described the move as the expansion of a valued partnership with new ambition, focus, and foresight. Following the leaders’ statement during the G7 meeting in Kananaskis in October 2025, both sides have worked steadily towards finalising the ToR.
Canada is home to over 4.25 lakh Indian students and a prominent Indian community. The Commerce Ministry stated that the “strong and enduring people-to-people ties” constituting “One Family” will be further reinforced by the conclusion of the India-Canada CEPA.
