India-Canada Trade Pact by 2026, UPI Integration Boost
By Business Desk
India and Canada target a 2026-end deadline for their Comprehensive Economic Partnership Agreement, aiming to boost trade and integrate India’s UPI for seamless cross-border payments.
India and Canada are actively working to finalize negotiations for a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026. This strategic push aims to significantly increase bilateral trade between the two nations.
The countries also plan to initiate discussions for a Bilateral Investment Treaty (BIT) in the near future. These key developments emerged from the inaugural Economic and Financial Dialogue held in Toronto.
Strengthening Economic Ties
India’s Finance Minister Nirmala Sitharaman and Canada’s Minister of Finance and National Revenue, Francois-Philippe Champagne, led the dialogue. A primary focus was enhancing cross-border payments and expanding the use of India’s Unified Payments Interface (UPI) within Canada.
This expansion of UPI is expected to facilitate faster and more cost-effective transactions across borders. Such improvements are critical for supporting various sectors including trade, tourism, education, and the growth of small and medium-sized enterprises.
Key Trade Targets and Mechanisms
The dialogue builds upon a previous commitment made by Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney in March 2026 to strengthen economic and financial cooperation.
- Both sides aim to increase bilateral trade to CAD 70 billion (approximately Rs 4.65 lakh crore) by 2030.
Ministers explored several opportunities for collaboration beyond trade pacts. These areas include modernizing payment systems and ensuring financial stability.
- Fintech Innovation: Exploring new technologies in financial services.
- Capital Markets Development: Strengthening and expanding financial markets.
- Combating Financial Crime: Working together to prevent illicit financial activities.
- Global Economic and Financial Issues: Cooperating on critical minerals to build resilient supply chains.
Future Dialogues
The next India-Canada Economic and Financial Dialogue is already scheduled for 2027. This ongoing engagement underscores a mutual commitment to advancing cooperation and achieving tangible economic outcomes.