India and Canada to boost economic ties, target CEPA deal by 2026-end

India and Canada aim to conclude negotiations on a Comprehensive Economic Partnership Agreement by the end of 2026 and begin Bilateral Investment Treaty talks, while also exploring wider UPI use and targeting expansion of bilateral trade to CAD 70 billion by 2030

Washington: In a bid to deepen bilateral economic and financial cooperation, India and Canada have said they are looking to conclude negotiations on a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026 and initiate talks on a Bilateral Investment Treaty (BIT) at the earliest.

At the inaugural Economic and Financial Dialogue in Toronto on Thursday, Finance Minister Nirmala Sitharaman and Canada’s Minister of Finance and National Revenue, Francois-Philippe Champagne, agreed to support engagement between relevant authorities and stakeholders to explore opportunities related to cross-border remittances and merchant payments.

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They also welcomed opportunities to broaden the use of UPI in Canada through partnerships with payment service providers, recognising that such efforts could contribute to faster and more cost-effective payments and support bilateral trade, tourism, education and the growth of small and medium-sized enterprises in both countries, according to a joint statement issued after the inaugural Economic and Financial Dialogue.

The dialogue builds on the commitment made by Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney during their meeting in New Delhi in March 2026 to strengthen bilateral economic and financial cooperation.

The two sides also reaffirmed their shared commitment to conclude negotiations on a Canada-India Comprehensive Economic Partnership Agreement by the end of 2026.

During the dialogue, the ministers exchanged views on global macroeconomic developments and domestic policy priorities and discussed ways to strengthen economic and investment ties.

The discussions aimed to support financial and commercial linkages between the two countries and advance the leaders’ shared goal of expanding bilateral trade to CAD 70 billion, or around Rs 4.65 lakh crore, by 2030.

India also expressed its readiness to initiate negotiations on a Bilateral Investment Treaty at the earliest, the joint statement said.

The ministers welcomed the growing investment relationship between the two countries and recognised the role of long-term institutional capital in strengthening bilateral economic ties.

They noted the substantial presence of Canadian pension funds and other institutional investors in India and discussed ways to facilitate greater engagement between Indian and Canadian financial institutions and institutional investors.

The two sides also explored opportunities for cooperation in payments modernisation, financial stability, fintech innovation, capital market development and efforts to address financial crime.

On global economic and financial issues, the ministers agreed to explore greater cooperation in areas of shared interest, including critical minerals, with a focus on building resilient and diversified supply chains.

Following the dialogue, Sitharaman and Champagne held joint engagements with representatives from Canada’s financial services, fintech, technology, artificial intelligence, infrastructure, energy and natural resources sectors.

The engagements highlighted opportunities for greater collaboration among businesses, financial institutions and other stakeholders in the two countries.

The ministers reaffirmed their commitment to regular economic and financial dialogue and to advancing concrete cooperation and tangible outcomes in areas of mutual interest.

The next India-Canada Economic and Financial Dialogue will be held in 2027.

Sitharaman also interacted with leading business chambers and professional alumni associations in the India-Canada corridor to explore new avenues of cooperation.