India-Canada BIT Talks: Boosting Trade to CAD 70 Billion by 2030

India has signaled its readiness to promptly begin negotiations on a Bilateral Investment Treaty (BIT) with Canada. This move follows the inaugural Canada-India Finance Ministers’ Economic and Financial Dialogue, where both nations set an ambitious target to expand bilateral trade.

During the dialogue, Finance Ministers Nirmala Sitharaman and Francois-Philippe Champagne discussed strategies to achieve a bilateral trade volume of CAD 70 billion, equivalent to INR 4.65 lakh crore, by the year 2030.

Setting the Stage for Enhanced Cooperation

This economic and financial dialogue built upon a prior commitment made by Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi in March 2026. The discussions primarily focused on strengthening economic and financial cooperation, including trade and investment.

Ministers addressed various topics, ranging from global macroeconomic developments to domestic policy priorities. They emphasized the mutual benefits of deepening economic and investment ties between the two countries.

Deepening Investment and Financial Sector Links

Both India and Canada acknowledged their growing investment relationship, noting the significant presence of Canadian pension funds and institutional investors within India. They explored mechanisms to facilitate greater engagement among financial institutions.

Several key areas were identified for enhanced financial-sector cooperation:

• Payments modernization and ensuring financial stability.
• Advancing FinTech innovation and capital markets development.
• Collaborative efforts to combat financial crime.

Facilitating Cross-Border Transactions

The ministers also supported initiatives concerning cross-border remittances and merchant payments. A notable point of discussion was the potential to broaden the use of India’s Unified Payments Interface (UPI) within Canada.

Such initiatives are expected to bring about faster, more efficient, and more cost-effective payment systems. This would significantly bolster bilateral trade, tourism, education, and the growth of small and medium-sized enterprises in both nations.

Economic Security and Strategic Sectors

Regarding broader economic security, the dialogue underscored the importance of resilient and diversified supply chains. India and Canada agreed to collaborate in strategic sectors, including critical minerals.

Following the formal dialogue, Ministers Sitharaman and Champagne engaged with Canadian sector representatives to highlight opportunities for long-term growth and expanded collaboration.

Key Trade Figures and Future Outlook

Current bilateral merchandise trade between the two countries stood at approximately USD 8 billion in the fiscal year 2025-26. Beyond the BIT, both nations are also actively negotiating a Comprehensive Economic Partnership Agreement (CEPA).

• Target for CEPA bilateral trade: USD 50 billion by 2030.
• Next Canada-India Economic and Financial Dialogue scheduled for: 2027.

These ongoing efforts underscore a concerted push to deepen economic integration and achieve ambitious trade targets between India and Canada in the coming years.