India and Canada Restart High-Level Economic Dialogue After Diplomatic Freeze

India and Canada Resume High-Level Trade Talks

India and Canada have officially restarted negotiations on the Comprehensive Economic Partnership Agreement (CEPA) , signaling a major reset in bilateral ties after more than two years of diplomatic tension. The renewed engagement reflects both countries’ shared goal of strengthening economic cooperation at a time of shifting global supply chains and emerging trade alliances.

CEPA Negotiations Restart After Leadership Talks

The decision was announced following a meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G20 Summit in Johannesburg. Both leaders emphasised the need to revive an ambitious trade pact that could boost bilateral trade to USD 50 billion by 2030 . Carney noted that enhanced cooperation would unlock new opportunities for sectors such as technology, agriculture, energy and services.

Diplomatic Reset After a Period of Strain

CEPA discussions were halted in 2023 after political tensions escalated over allegations relating to the killing of a Canadian Sikh separatist. Despite the strain, trade volumes continued to rise modestly. A series of recent high-level interactions—including Modi and Carney’s meeting during the 2025 G7 Summit—helped rebuild trust, setting the stage for resumed economic dialogue.

Trade Dynamics and Priority Sectors

Bilateral trade in goods and services reached approximately C$31 billion in 2024, with Canada holding a surplus due to strong service exports. The two nations reaffirmed cooperation in civil nuclear energy , particularly long-term uranium supply arrangements. Canada views India as an essential market as it seeks to diversify exports beyond the United States.

Exam Oriented Facts

• India and Canada have revived CEPA negotiations targeting USD 50 billion trade by 2030 .

• Bilateral trade in 2024 was around C$31 billion .

• Diplomatic reset gained momentum after meetings at the 2025 G7 Summit .

• Civil nuclear cooperation, including uranium supply, remains a key area of engagement.