India and Canada have started the fifth round of Comprehensive Economic Partnership Agreement (CEPA) talks in Ottawa. The five-day negotiations began on October 5 and are scheduled to continue until October 9.

Both countries aim to complete the proposed trade agreement by the end of 2026. The latest round follows the fourth round, which concluded in New Delhi on September 18.

Focus on Trade and Investment

The India-Canada CEPA talks are expected to cover key areas of bilateral trade and investment. A CEPA aims to reduce or remove customs duties on traded goods. It can also support investment and improve opportunities for skilled professionals.

The negotiations have gained momentum after several pauses. India and Canada originally began discussions in 2015. Talks continued through 2017 before being put on hold.

The two countries restarted negotiations in 2022. However, the process was paused again in 2023 amid strained bilateral relations. Formal negotiations resumed after both sides agreed in November 2025 to restart the process.

Business Engagement Gains Momentum

Canadian Trade Minister Maninder Sidhu is expected to visit New Delhi later this month. He will lead a 300-member business delegation.

The visit is expected to strengthen commercial ties and support the ongoing India-Canada CEPA talks. Canadian Prime Minister Mark Carney has also indicated that Prime Minister Narendra Modi may visit Canada around December.

India-Canada Trade

Bilateral goods trade declined 8.23% to $7.95 billion in 2025-26, from $8.7 billion in 2024-25.

India's exports to Canada increased 10.63% to $4.67 billion. Imports from Canada fell 26.14% to $3.28 billion.

India's key exports include pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods and chemicals. Major imports from Canada include pulses, coal, fertilisers, paper and crude petroleum.

Canada is also an important market for India's services exports. Telecommunications, computer and information services, and other business services lead India's services trade with Canada.

Canada has invested $4.8 billion in India between April 2000 and June 2026. The proposed CEPA could further strengthen trade, investment and business opportunities between the two countries.