Bengaluru

Indian and Canadian entities signed a series of commercial agreements and Memoranda of Understanding on Friday in the presence of Canada's Minister of International Trade, Maninder Sidhu.

The developments took place during the Canada-India Business Ceremony in Karnataka, where Sidhu participated in the formal announcement and signing process between commercial establishments of both nations.

According to a presentation by the Ministry of Commerce and Industry on Thursday, India and Canada confirmed their target to conclude negotiations for a proposed Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026.

The fifth round of negotiations took place in Ottawa between October 5 and October 9, addressing market access for goods and services, investment parameters, rules of origin, intellectual property rights, and trade remedies. The next round of bilateral discussions is scheduled to take place in New Delhi in early November.

The proposed agreement seeks to reduce trade barriers and improve market access for enterprises operating across both jurisdictions. According to government data, bilateral trade between the two countries reached USD 7,956.43 million in FY26. 

Official estimates project that the CEPA will boost bilateral trade by USD 4.4 billion to USD 6.5 billion (CD 6 billion to CD 8.8 billion), while generating a gross domestic product gain of USD 3.8 billion to USD 5.9 billion (CD 5.1 billion to CD 8 billion) for Canada by 2035.

Addressing a business reception hosted as part of the Team Canada Trade Mission to India in Bengaluru on Thursday, Sidhu highlighted India as an essential commercial market, pointing to sectors such as artificial intelligence, quantum computing, aviation infrastructure, digital innovation, sustainability, and smart mobility.

"Canada and India are renowned for their creative flair. So what better place for all of us to gather than here in India's Innovation Hub?" Sidhu said.

He noted that several Canadian firms, including Kinaxis, OpenText, CGI, CAE, Magellan Aerospace, MDA Space, and BCE Global Tech, already maintain established operations in India.

"Companies of every size are succeeding here, and it always starts with a relationship," he said.

Addressing potential collaboration in the aviation and transport sectors, Sidhu referenced his visit to the Terminal 2 of Bengaluru airport.

"I saw the opportunity for Canada and India to work together just a few hours ago when I toured Terminal 2 of the Bengaluru airport and heard about its plans for its expansion," he said.

"Canada's Fairfax Financial has already shown what it can do with its investments in the airport, and Canadian companies such as Genetec, Transoft Solutions, and RBH Access are already working hard on the ground at the airport," Sidhu added.

Detailing Canada's wider commercial export priorities, Sidhu underscored the macroeconomic factors driving Ottawa's focus on the Indian market.

"Canadian companies like those here tonight are ready to tap into the talent to bring technology and innovation and long-term partnerships to India's dynamic market. In AI and quantum computing, in digital innovation and security, in aviation infrastructure, and in sustainability and smart mobility--and that's just the short list," he said.

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"As we look to double our non-U.S. exports over the next decade, India is a market we can’t afford to ignore. Its economy is growing at approximately 7% annually; it is on track to become the world’s third-largest economy, and it is home to 1.4 billion people," he said.