Chicago – November 25, 2025
India and Canada have agreed to restart talks on a high-ambition trade deal as Prime Minister Narendra Modi and Prime Minister Mark Carney work to repair strained ties. The renewed push aims to boost bilateral trade to $50 billion by 2030 amid improving diplomatic relations.
Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney agreed to resume discussions on a bilateral free trade deal, the latest sign of warming relations between the two countries.
The talks were announced after Modi and Carney met on the sidelines of the Group of 20 summit in South Africa. The leaders decided to “begin negotiations on a high-ambition Comprehensive Economic Partnership Agreement,” according to a statement from India’s Ministry of External Affairs.
Carney also accepted Modi’s invitation to visit India early next year.
The goal is for bilateral trade to reach $50 billion by 2030, the Indian government said. The two countries exchanged about C$31 billion ($22 billion) in goods and services last year, according to Canadian official data.
Canada and India have sought a trade deal before, but diplomatic relations ruptured in 2023 after then-Prime Minister Justin Trudeau and other officials said there was evidence the Indian government orchestrated the killing of a Sikh activist in the Vancouver region. Canadian police have laid criminal charges in the case, with a trial pending.
Indian officials have long complained that Canada doesn’t do enough to crack down on active Sikh separatist groups that want to disrupt Indian politics.
You can also read: US report on May 2025 India–Pakistan clash sparks political storm in New Delhi
