India-Canada Trade Pact Targets $70B by 2030

India and Canada are making significant progress towards finalizing a bilateral trade pact, with a shared ambition to reach a $70 billion trade target by 2030. This development stems from discussions between Indian Finance Minister Nirmala Sitharaman and Canadian Finance Minister François-Philippe Champagne.

Key Trade Targets

• Bilateral Trade Target: $70 billion
• Target Achievement Year: 2030

Expanding Canadian Investment

During a joint press briefing in Toronto, Minister Sitharaman emphasized the vast potential for increased Canadian investment in India. She specifically encouraged greater participation from Canadian institutional investors and pension funds.

Minister Champagne echoed this sentiment, affirming the $70 billion target as “totally achievable.” He highlighted the pivotal role Canadian pension funds could play as significant investors in the Indian market.

Strategic Collaboration and Financial Gateways

Discussions between the finance ministers also covered critical areas for collaboration, including energy and food security. Both India and Canada aim to become “partners of choice” in these essential sectors.

Minister Sitharaman actively promoted India’s GIFT City as a prime destination for global financial institutions. She underscored its favorable regulatory and tax framework for facilitating cross-border financial activities.

• Sectors recently opened to foreign investment include:
• Insurance
• Asset management
• Pensions

The burgeoning growth of India’s capital markets provides further avenues. These opportunities allow Canadian investors to leverage India for broader regional and global financial operations.

Digital Innovation and Emerging Sectors

The Indian Finance Minister also highlighted India’s advancements in digital payment infrastructure. She specifically cited the Unified Payments Interface (UPI) for its role in expanding financial inclusion and driving innovation in digital transactions.

India is also actively positioning itself as a reliable and cost-effective alternative within global supply chains. Several promising sectors were identified for potential Canadian investment, offering diversified opportunities:

• Semiconductors
• Magnets
• Rare earths

Resetting Bilateral Relations

This renewed push for economic cooperation follows a significant diplomatic initiative. Prime Ministers Narendra Modi and Mark Carney had agreed to reset bilateral ties at the G7 Summit in June 2025.

The process gained substantial momentum during Mr. Carney’s subsequent visit to India. This sustained engagement underscores a commitment to strengthening the comprehensive economic relationship between the two nations.