India and Canada said they are targeting the conclusion of negotiations on a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026, and will pursue talks on a Bilateral Investment Treaty "at the earliest", officials announced after the inaugural Economic and Financial Dialogue in Toronto on Thursday.
What was agreed
The meeting between Union Finance Minister Nirmala Sitharaman and Canada’s Minister of Finance and National Revenue, Francois-Philippe Champagne, yielded a joint statement that set out several immediate priorities to deepen economic and financial cooperation. Key elements announced include:
- CEPA timeline: Both sides reaffirmed a goal to conclude Comprehensive Economic Partnership Agreement negotiations by end-2026.
- Bilateral Investment Treaty: India expressed readiness to initiate talks on a Bilateral Investment Treaty "at the earliest".
- Payments cooperation: The ministers agreed to support stakeholder engagement to explore cross-border remittances and merchant payments, and to broaden the use of UPI in Canada through partnerships with payment service providers.
- Trade target: The dialogue aims to advance a bilateral trade expansion goal of CAD 70 billion — reported as around ₹4.65 lakh crore — by 2030.
Numbers and mechanics
The joint statement said both sides exchanged views on global macroeconomic developments and domestic policy priorities while seeking to strengthen financial and commercial linkages. They also noted the role of long-term institutional capital and the growing presence of Canadian investors across sectors.
| Item | Target / Detail |
|---|---|
| CEPA completion | By end-2026 |
| Trade target | CAD 70 billion (~₹4.65 lakh crore) by 2030 |
| Payments agenda | Explore UPI expansion, cross-border remittances and merchant payments |
Why it matters
For businesses and consumers the implications are concrete:
- An early CEPA could lower tariffs and reduce non-tariff barriers across goods and services, potentially cutting costs for importers and exporters on both sides.
- Broader use of UPI in Canada could reduce remittance costs, speed up small-value cross-border payments and benefit Indian diaspora households and small merchants servicing them.
- Commitments on a Bilateral Investment Treaty and emphasis on long-term institutional capital may ease structural investment flows, supporting sectors such as clean energy, technology and financial services.
Officials framed the dialogue as building on an earlier commitment made during a March 2026 meeting in New Delhi between Prime Minister Narendra Modi and, as stated in the joint statement, Canadian Prime Minister Mark Carney. The Toronto event is intended to operationalise those leaders’ pledge to deepen economic partnership.
Context and next steps
The inaugural Economic and Financial Dialogue is a signal that both capitals want a more structured process to pursue trade and payments cooperation. Operational steps now include engagement between relevant authorities and private stakeholders to advance UPI partnerships, and preparatory work ahead of formal CEPA rounds. The ministers also agreed to keep macroeconomic and financial cooperation on the agenda as global economic conditions evolve.
What it means for you: if the CEPA and payments measures progress as planned, Indian exporters, service firms and the diaspora could see lower transaction costs and smoother market access; Canadian institutional investors may find clearer pathways into India. Timelines remain ambitious — concluding a comprehensive free-trade-style pact within a year requires rapid negotiation on sensitive sectors, rules of origin, services commitments and investment protections.
The joint statement did not provide a detailed negotiating schedule. Both sides will now move to engage regulatory bodies, payment operators and business groups to convert the announced priorities into concrete agreements and timelines.
