India and Canada are stepping up efforts to strengthen their economic relationship, with both countries reaffirming their commitment to complete a bilateral trade agreement by the end of 2026.
The renewed push follows the inaugural India–Canada Finance Ministers’ Economic and Financial Dialogue held in Toronto, where the two sides discussed ways to deepen economic cooperation, expand trade and investment, and create greater stability in their bilateral economic relationship.
India has also expressed its readiness to begin negotiations on a Bilateral Investment Treaty (BIT) at the earliest, signalling a broader effort to improve the framework for investments between the two countries.
A trade agreement could provide greater opportunities for businesses in both markets by improving market access, supporting cross-border trade and encouraging investment across key sectors. For India, stronger economic engagement with Canada could further support exporters and businesses seeking access to the Canadian market, while Canadian companies could gain opportunities in one of the world’s fastest-growing major economies.
The renewed commitment comes at a time when global trade is facing uncertainty from shifting tariff policies, geopolitical tensions and changing supply chains. Against this backdrop, closer India–Canada economic cooperation could play an important role in strengthening bilateral commercial ties and creating a more predictable environment for businesses and investors.
With both sides targeting the end of 2026 for the trade deal, the coming months are expected to be important as negotiations and discussions move forward.
