Canada Targets Major Boost In Trade With India To Reach $70 Billion Within Five Years

Canada and India are targeting a significant expansion in bilateral trade, with the two countries aiming to increase the value of goods and services exchanged between them from about USD 30 billion to USD 70 billion over the next five years, Canadian International Trade Minister Maninder Sidhu said on Thursday. Speaking at the 2026 G20 Trade Ministers Meeting in Milwaukee, Sidhu said ongoing negotiations for a free trade agreement could conclude in the coming months as both countries seek to build a more complementary economic relationship.

Sidhu said the trade target reflects a vision set by the leadership of both countries to substantially deepen their economic ties. “The vision that leaders have set out for us is to scale trade from USD 30 billion to USD 70 billion within the next five years,” he said. He added that greater trade facilitation through a free trade agreement would be an important part of achieving that goal. Negotiators are currently working to determine how the two economies can expand cooperation while strengthening areas where their respective industries complement each other.

The next stage of the negotiations is scheduled to take place in Ottawa on Monday, when the two sides will begin the fifth round of talks on the proposed trade agreement. Sidhu said he had travelled to India around 10 days earlier and met Union Commerce and Industry Minister Piyush Goyal in Mumbai, where discussions focused on the fourth round of negotiations. The Canadian minister acknowledged that trade negotiations can be difficult but said Ottawa remained committed to continuing the discussions and hoped to conclude them in the coming months.

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Sidhu also highlighted the scale of Canadian investment in India and said Canada has more than USD 100 billion invested in the country. He pointed to the involvement of Canadian companies in infrastructure projects, including airports and highways, as an example of existing economic cooperation. At the same time, he said Canada wanted to attract greater investment from Indian companies, particularly in sectors such as mining and energy. According to Sidhu, the broader relationship should extend beyond merchandise trade to include investment, research and collaboration between businesses and institutions in both countries.

Energy and critical minerals are emerging as central areas of the economic relationship, with Canada seeking to position itself as a supplier as India's economy and energy requirements expand. Sidhu said India’s economy is growing at about 7 per cent year over year and will require significantly more energy in the coming decade. He said India could benefit from Canada's energy resources, while Canadian companies could participate in India's economic development. The minister also referred to the launch of LNG Canada Phase 2 by Prime Minister Mark Carney, describing it as the second-largest LNG project in the world.

The focus on critical minerals is also significant as both countries seek to strengthen supply chains for industries that depend on resources such as minerals used in advanced manufacturing and energy technologies. For Canada, deeper economic engagement with India offers an opportunity to expand markets for its energy and resource sectors, while India is seeking reliable sources of energy and strategic raw materials to support continued economic growth. Sidhu said the two countries could benefit from closer cooperation across these areas rather than relying solely on traditional trade.

The proposed USD 70 billion trade target will depend on the outcome of the ongoing negotiations and the ability of businesses in both countries to expand commercial activity. The fifth round of talks in Ottawa is expected to provide another opportunity for negotiators to address outstanding issues in the proposed agreement. Sidhu said Prime Minister Carney and Prime Minister Narendra Modi had held positive discussions on bringing the two economies closer together. With trade, investment, energy, critical minerals, research and infrastructure identified as key areas, Canada and India are seeking to broaden their economic partnership over the next five years.

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