New Delhi, August 28, 2026: India and Canada are preparing to expand their economic relationship beyond traditional trade, with both countries working toward a bilateral trade target of CAD 70 billion, or about ₹4.65 lakh crore, by 2030.

The new economic push followed the inaugural India–Canada Finance Ministers’ Economic and Financial Dialogue in Toronto, where Union Finance Minister Nirmala Sitharaman and Canada’s Finance and National Revenue Minister François-Philippe Champagne discussed investment, financial cooperation, digital payments and trade.

India Ready to Begin Investment Treaty Talks

One of the major developments from the meeting was India’s stated readiness to begin negotiations on a Bilateral Investment Treaty (BIT) with Canada at the earliest.

Such a framework could provide a clearer structure for cross-border investments and potentially strengthen confidence among businesses and institutional investors operating between the two economies.

The two governments also highlighted the importance of long-term institutional capital and discussed ways to encourage stronger connections between Indian and Canadian financial institutions.

UPI Expansion in Canada Under Discussion

Digital payments emerged as another important area of cooperation.

India and Canada agreed to support discussions between relevant authorities and industry stakeholders on cross-border remittances and merchant payments. They also welcomed the possibility of expanding India’s Unified Payments Interface (UPI) in Canada through partnerships with Canadian payment service providers.

If implemented, broader UPI availability could make certain payments quicker and less expensive while supporting businesses, tourism, education and small and medium-sized enterprises.

The issue could also be significant for Indian students and families involved in cross-border financial transfers. The two countries are examining ways to make remittances and payments between India and Canada more convenient.

CEPA Talks Targeted for Completion in 2026

India and Canada have also reaffirmed their intention to complete negotiations for a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026.

The agreement is expected to provide a broader framework for expanding commercial ties between the two economies.

The latest financial dialogue builds on the March 2026 meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney, when the two leaders committed to strengthening economic and financial cooperation.

Canadian Pension Funds in Focus

Investment flows were another important part of the discussions.

Canadian pension funds and other institutional investors already have a significant presence in India. The two finance ministers discussed ways to create more opportunities for financial institutions and long-term investors from both countries.

The talks also highlighted the importance of domestic tax rules providing greater stability and predictability for investors.

For India, attracting additional long-term foreign capital could support infrastructure, technology and other sectors requiring substantial investment.

Critical Minerals Become a Strategic Priority

The two countries also identified critical minerals as an area where closer cooperation could strengthen economic security.

Demand for minerals used in clean-energy technologies, advanced manufacturing and other high-technology industries is increasing worldwide. India and Canada agreed to explore cooperation aimed at creating more resilient and diversified supply chains.

The discussions therefore extend beyond conventional merchandise trade and into areas connected with future technology and industrial development.

Wider Financial Cooperation

The economic dialogue covered several other areas, including financial stability, fintech innovation, capital-market development, payments modernisation and efforts to combat financial crime.

After the ministerial meeting, Sitharaman and Champagne also participated in discussions with representatives from Canada’s financial services, fintech, technology, artificial intelligence, infrastructure, energy and natural-resources industries.

These engagements were aimed at identifying opportunities for companies and financial institutions to work more closely across borders.

A New Phase for India-Canada Business Relations

The latest initiatives suggest that India and Canada are seeking to build a broader economic relationship based not only on trade in goods and services but also on investment, financial technology, institutional capital and strategic supply chains.

The CAD 70 billion trade ambition for 2030 provides a long-term benchmark for the partnership, while the proposed investment treaty and CEPA negotiations could create additional mechanisms for business cooperation.

For now, several initiatives remain at the discussion or negotiation stage. Their eventual impact will depend on regulatory agreements, implementation and the ability of businesses and financial institutions in both countries to convert the new commitments into actual investment and commercial activity.

The next India–Canada Economic and Financial Dialogue is scheduled to take place in 2027, giving both governments an opportunity to review progress and pursue further cooperation.