The development was announced following a meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G20 Leaders’ Summit in Johannesburg today.
New Delhi: In a significant diplomatic breakthrough, India and Canada have agreed to launch negotiations on a high-ambition Comprehensive Economic Partnership Agreement (CEPA), marking a major reset in ties after years of turbulence. The development was announced following a meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G20 Leaders’ Summit in Johannesburg today.
The Canada-India CEPA negotiations began in 2010 and gained momentum in 2022 with enhanced cooperation in sectors such as pharmaceuticals and critical and rare earth minerals, as well as in areas like tourism, urban infrastructure, renewable energy and mining. The talks were suspended by Canada in 2023.
According to a statement issued by India’s Ministry of External Affairs (MEA) late Sunday, both sides committed to pursuing an ambitious trade pact aimed at doubling bilateral trade to $50 billion by 2030. The renewed engagement also includes deepening longstanding civil nuclear cooperation and advancing discussions on long-term uranium supply arrangements, an area of shared strategic interest.
This diplomatic thaw comes after a prolonged period of strain between New Delhi and Ottawa. Over the past several years, India has repeatedly raised concerns about the Khalistani extremist networks operating from Canadian soil, which it says pose a direct threat to India’s national security. Ties deteriorated sharply in 2023 after former Canadian Prime Minister Justin Trudeau levelled unsubstantiated allegations against India regarding the killing of a Canadian citizen linked to Khalistani separatism. India dismissed the claims as politically motivated and lacking evidence, leading to reciprocal diplomatic downsizing and a freeze in trade negotiations.
The shift in tone began earlier this year, driven by sustained engagement between External Affairs Minister S Jaishankar and his Canadian counterpart Anita Anand. The two leaders met multiple times, paving the way for confidence-building measures and the gradual restoration of normal diplomatic channels. In October 2025, both countries formally announced the normalisation of diplomatic ties, including the reinstatement of High Commissioners in New Delhi and Ottawa.
Canadian Prime Minister Mark Carney, speaking to the media earlier on Sunday, said, “Canada is reengaging pragmatically with global giants India and China. Yesterday, Canada, India and Australia formed a new trilateral partnership on technology and innovation, which will accelerate our cooperation in critical and emerging technologies. The partnership will draw on our strengths and will focus on clean energy, critical minerals and artificial intelligence to unlock more opportunities for Canadian workers and businesses”.
The potential trade deal is likely to include goods, services, investments, agriculture, digital trade, labour mobility and sustainable development, including the mutual interest in advancing the use of AI and digital technology.
The Johannesburg meeting appears to have consolidated that momentum. Apart from CEPA, PM Modi and Carney welcomed the Australia-Canada-India Technology and Innovation (ACTI) Partnership aimed at boosting trilateral cooperation in critical technologies, AI, nuclear energy, and supply chain diversification.
With negotiations on CEPA set to begin and high-level exchanges back on track, India and Canada now stand poised to rebuild a partnership once considered jeopardised. The coming months will test whether this political reset can translate into durable economic and strategic gains for both nations.
