India and Canada could see their economic relationship gain fresh momentum as both countries work towards concluding a Comprehensive Economic Partnership Agreement by the end of 2026. According to an article by former Indian High Commissioner to Canada Sanjay Kumar Verma, the two countries have long had the resources and commercial interests needed for a strong partnership, but political and institutional factors have periodically limited progress. The renewed focus on economic cooperation could now provide a framework for expanding bilateral trade and investment.

The March 2026 Joint Leaders' Statement placed several sectors at the centre of the renewed relationship, including energy, critical minerals, clean technologies, science and technology, space, resilient supply chains and talent mobility. The proposed CEPA is expected to play a central role in this effort. Both governments will need to balance their respective economic interests and domestic sensitivities while negotiating market access and other elements of the agreement.

Energy is one area where the two countries have significant potential for cooperation. Canada has resources that could make it an important supplier of liquefied natural gas, liquefied petroleum gas, crude oil and uranium, while India remains a major and growing energy market. The countries have established a Strategic Energy Partnership covering conventional energy, civil nuclear cooperation, clean energy and critical minerals. A reported CAD 2.6 billion long-term uranium supply agreement between Cameco and India's Department of Atomic Energy provides a concrete example of the potential for deeper cooperation.

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Critical minerals could also become an important component of the bilateral economic relationship as demand grows for materials used in batteries, clean technologies and advanced manufacturing. Canada has substantial mineral resources and related expertise, while India has a large industrial and technology base. Cooperation could extend beyond the purchase of raw materials to areas such as exploration, processing, investment, technology and the development of more resilient supply chains.

Technology, clean energy and space offer additional areas for collaboration. Canada has strengths in artificial intelligence, quantum technologies, advanced research and aerospace, while India has a large technology workforce and extensive experience in deploying digital platforms. The two countries are also exploring cooperation in solar, wind, bioenergy, small hydro and energy storage. Longstanding institutional ties between ISRO and the Canadian Space Agency could provide a foundation for further space-related projects.

The CEPA negotiations are nevertheless expected to involve difficult areas as both countries seek improved market access. India is likely to pursue greater opportunities for pharmaceuticals, engineering products, machinery, IT and professional services, while Canada has interests in agriculture, agri-food, energy, minerals and wood products. The success of the proposed agreement will depend on how effectively both sides address domestic sensitivities while converting their complementary economic strengths into sustained trade, investment and supply-chain partnerships.

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