India and Canada Target End-2026 for Comprehensive Economic Partnership Agreement

India and Canada are aiming to conclude negotiations on a Comprehensive Economic Partnership Agreement by the end of 2026. The announcement was made following the inaugural Economic and Financial Dialogue held in Toronto on Thursday.

Indian Finance Minister Nirmala Sitharaman and Canadian Minister of Finance and National Revenue François-Philippe Champagne met for the discussions, which focused on deepening bilateral economic and financial cooperation. The two sides also agreed to initiate talks on a Bilateral Investment Treaty at the earliest opportunity.

The dialogue follows a commitment made by Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney during their meeting in New Delhi in March 2026. Both nations are working toward a shared goal of expanding bilateral trade to CAD 70 billion, approximately ₹4.65 lakh crore, by 2030.

During the meeting, the ministers discussed global macroeconomic developments, domestic policy priorities, and ways to strengthen financial and commercial linkages. They also welcomed opportunities to broaden the use of the Unified Payments Interface (UPI) in Canada through partnerships with payment service providers. Officials noted that UPI could support faster, cost-effective payments, benefiting bilateral trade, tourism, education, and the growth of small and medium-sized enterprises in both countries.

The joint statement highlighted the growing investment relationship between India and Canada, recognizing the role of long-term institutional capital. Discussions included the substantial presence of Canadian pension funds and other institutional investors in India, alongside ways to facilitate greater engagement between financial institutions of both nations.

Other areas of cooperation explored during the dialogue included payments modernization, financial stability, fintech innovation, capital markets development, and the prevention of financial crime. The ministers also agreed to explore greater cooperation in critical minerals to build resilient and diversified supply chains.

Following the formal dialogue, Sitharaman and Champagne engaged with representatives from Canada's financial services, fintech, technology, artificial intelligence, infrastructure, and energy sectors. Sitharaman also interacted with business chambers and professional alumni associations within the India-Canada corridor.

The next India-Canada Economic and Financial Dialogue is scheduled to be held in 2027.

"The renewed focus between India and Canada to finalize a Comprehensive Economic Partnership Agreement by 2026 is a positive step for cross-border commerce. For businesses, particularly small and medium-sized enterprises, discussions around expanding UPI to Canada and easing merchant payments open up practical avenues for smoother transactions. Furthermore, the emphasis on institutional capital, fintech innovation, and resilient supply chains in critical sectors highlights clear long-term opportunities for economic collaboration between the two nations." — Dr. Shishir Gupta, Founder & CEO, StartupLanes