India-Canada Trade Target: $50B by 2030 with FTA
By Business Desk
India and Canada aim to reach $50 billion in bilateral trade by 2030, fueled by ongoing Free Trade Agreement negotiations expected to conclude by 2026.
India and Canada are on track to significantly increase their bilateral trade to $50 billion by 2030, according to Finance Minister Nirmala Sitharaman. This ambitious target was initially set last year during Prime Minister Narendra Modi’s visit.
Driving Bilateral Trade Growth
The two nations are actively negotiating a Free Trade Agreement (FTA), aiming for its finalization by the end of 2026. This agreement is expected to be a primary driver in boosting bilateral trade from its current $7.96 billion in FY26 towards the $50 billion goal. Both countries view this proposed deal as a critical factor for stability within the current global environment.
- Bilateral trade target: $50 billion by 2030
- Current bilateral trade (FY26): $7.96 billion
- FTA conclusion goal: End of 2026
Economic Complementarity and Stability
Canada’s Minister of Finance and National Revenue, Francois-Philippe Champagne, emphasized trust as a highly sought-after commodity in global relations. He highlighted the complementary nature of the Indian and Canadian economies across several vital sectors.
- Food security
- Energy security
- Economic security
- National security
Investment Flows and Future Agreements
Beyond the Free Trade Agreement, India and Canada are also exploring a financial investment protection agreement. This initiative follows a significant rise in Canadian foreign direct investment (FDI) into India over the last four years.
- Canadian FDI into India: Nearly doubled in the last four years
- Ranked as India’s 16th largest FDI source in FY26
- Cumulative investments: $4.33 billion since April 2000
An example of this increased engagement includes Canadian financial services firm Fairfax reportedly bidding for a 60% stake in IDBI Bank. Finance Minister Sitharaman encouraged Canadian businesses to maintain active dialogue with the Indian government, assuring them of continuous measures aimed at improving India’s overall business environment.
These ongoing discussions and investment flows underscore a deepening economic relationship between India and Canada. The strategic focus on trade and investment protection agreements aims to solidify this partnership amidst global uncertainties.