India, Canada target C$70 billion bilateral trade by 2030, eye investment treaty talks

INDIA and Canada have set a shared goal of expanding bilateral trade to C$70 billion, or ₹4.65 trillion, by 2030, while India said it was ready to begin negotiations on a bilateral investment treaty (BIT) at the earliest, according to a joint statement issued on Friday after the first Canada-India finance ministers’ economic and financial dialogue.

Finance minister Nirmala Sitharaman and Canada’s finance and national revenue minister François-Philippe Champagne concluded the inaugural dialogue, which focused on deepening economic and financial cooperation, including trade and investment.

The dialogue builds on a commitment made by Canadian Prime Minister Mark Carney and Prime Minister Narendra Modi during their meeting in New Delhi in March 2026 to strengthen bilateral economic and financial ties. The two countries have also committed to concluding negotiations on the Canada-India Comprehensive Economic Partnership Agreement (Cepa) by the end of 2026.

The ministers exchanged views on global macroeconomic developments and domestic policy priorities, and discussed ways to deepen economic and investment ties to strengthen financial and commercial linkages between the two countries.

“India expressed its readiness to initiate negotiations on a bilateral investment treaty at the earliest,” the joint statement said.

Investment push

The ministers welcomed the growing investment relationship between India and Canada and recognized the role of long-term institutional capital in strengthening bilateral economic ties.

They noted the substantial presence of Canadian pension funds and other institutional investors in India, as well as their potential to contribute to economic growth and development. They also recognized that tax relief currently provided by India to these investors has helped stimulate investment.

The ministers discussed the importance of domestic tax legislation that provides stability and certainty to taxpayers on their investments. They also explored ways to increase engagement between Indian and Canadian financial institutions and institutional investors and identify commercially viable investment opportunities across sectors of mutual interest, according to the statement.

Deeper financial ties

Financial-sector cooperation was another focus, with the ministers exploring deeper collaboration on payments modernisation, financial stability, fintech innovation, capital markets development and efforts to tackle financial crime.

They agreed to support engagement between relevant authorities and stakeholders on cross-border remittances and merchant payments.

The ministers also welcomed opportunities to expand the use of UPI in Canada through partnerships with payment service providers. Such efforts, they said, could enable faster, more efficient and cost-effective payments while supporting bilateral trade, tourism, education and the growth of small and medium-sized enterprises in both countries.

The ministers also discussed international economic and financial developments and opportunities for cooperation in areas of shared interest.

Recognizing the importance of resilient and diversified supply chains for economic security and sustainable growth, they agreed to pursue collaboration in strategic sectors, including critical minerals.

Following the dialogue, Sitharaman and Champagne held joint engagements with representatives from Canada’s financial services, fintech, technology, artificial intelligence, infrastructure, and energy and natural resources sectors.

The discussions highlighted shared priorities and opportunities to expand long-term collaboration among businesses, financial institutions and other stakeholders in the two countries.

The ministers reaffirmed their commitment to strengthening bilateral economic and financial ties through regular dialogue and advancing concrete cooperation in areas of mutual interest. The next economic and financial dialogue will take place in 2027.