The potential economic implications of a strengthened Canada-India relationship are coming into focus as Prime Minister Narendra Modi plans to visit Canada in December. This visit is strategically timed with the ongoing negotiations for a Comprehensive Economic Partnership Agreement (CEPA), which both nations aim to finalize by the end of 2026. The agreement holds the promise of expanding bilateral trade and investment, enhancing cooperation in sectors like energy and technology.
Canadian Prime Minister Mark Carney, speaking during the United Nations General Assembly in New York, highlighted the progress in discussions with India. He emphasized the importance of this relationship not only for trade and investment but also for security and cultural exchanges. Carney expressed anticipation in hosting Modi in Canada around the G20 summit in Miami, reinforcing the diplomatic ties between the two nations.
Negotiations for the CEPA are advancing, with the fifth round scheduled to begin on October 5. Both countries have shown a commitment to accelerating the discussions, having completed the fourth round earlier this month. The agreement seeks to significantly boost the current trade figures, with Canada setting a goal to double trade with India to C$70 billion annually by 2030, up from C$30.4 billion recorded in 2025.
This upcoming visit will be Modi’s first standalone bilateral visit to Canada since April 2015, marking a pivotal moment in the renewed efforts to mend and enhance economic and diplomatic relations. Modi had previously visited Canada in June 2025 for the G7 summit, where he and Carney discussed ways to strengthen bilateral ties.
The renewed focus on economic engagement comes after a period of strained relations. Earlier this year, Carney visited India, resulting in a mutual agreement to expedite CEPA negotiations and expand collaborations across various fields, including artificial intelligence and defense. This visit and the ongoing negotiations signify a clear intent from both sides to rebuild and fortify their partnership for mutual benefit.