SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure
Institutions: Ministry of Commerce & Industry | Ministry of External Affairs (MEA)
On the margins of the G20 Leaders’ Summit in Johannesburg, South Africa, Indian Prime Minister Narendra Modi met with Canadian Prime Minister Mark Carney, where both leaders formally agreed to launch negotiations for an ambitious Comprehensive Economic Partnership Agreement (CEPA). This milestone builds on positive bilateral momentum and the 7th Ministerial Dialogue on Trade and Investment. The leaders expressed confidence that the CEPA will serve as a powerful economic anchor and help more than double two-way trade to $70 billion by 2030.
The scope of the high-ambition CEPA encompasses critical areas including goods, services, investment, agriculture and agri-food, digital trade, mobility, and sustainable development.
India’s Commerce and Industry Minister, Piyush Goyal, reinforced this strategy, highlighting massive collaboration potential in key sectors where Canada’s strengths complement India’s growth:
Critical Minerals and Clean Energy: Collaboration in critical minerals, mineral processing technologies, clean energy, and nuclear energy is a top priority for supply-chain diversification. India aims to double its clean energy capacity to 500 GW by 2030, positioning it as a sustainable partner.
Emerging Technologies: India offers strong advantages in emerging technologies such as Artificial Intelligence (AI), quantum computing, and machine learning, supported by the world’s largest annual pool of STEM graduates. India urged Canadian participation in its upcoming AI Summit and promoted joint innovation, backed by a recently announced $12 billion fund for research and development.
Diplomatic Ties: The leaders agreed to strengthen people-to-people linkages, enhance diplomatic staffing, and noted progress in law enforcement dialogue. Prime Minister Carney accepted an invitation to visit India in early 2026.
Policy Relevance: The formal launch of CEPA negotiations, coupled with the clear focus on critical minerals and clean technologies, signals a critical diplomatic renewal aimed at establishing a deep, resilient economic partnership. This collaboration is strategic for India’s goal of securing vital inputs for its energy transition while positioning the country as a global hub for AI and clean energy infrastructure.
What is a Comprehensive Economic Partnership Agreement (CEPA)?→ A Comprehensive Economic Partnership Agreement (CEPA) is a bilateral Free Trade Agreement (FTA) that goes beyond merely reducing tariffs on goods. It is a broad, high-ambition accord that includes significant provisions on trade in services, investment, mobility (movement of professionals), digital trade, and regulatory cooperation. The India-Canada CEPA is intended to strengthen investor confidence and provide a robust framework for trade issues.
Relevant Question for Policy Stakeholders: Which sectors should India prioritise in the India-Canada CEPA negotiations to maximise mutual benefit and advance India’s export and industrial strategy?
Follow the full news here: India and Canada Formally Launch CEPA Negotiations to Double Bilateral Trade by 2030 | Prime Minister Carney meets with Prime Minister of India Narendra Modi