Latest news about India-Canada Trade Developments 2025

📰 Introduction

After months of diplomatic tension, India and Canada have reopened trade discussions in 2025, signaling a renewed commitment to strengthen bilateral relations.
Officials from both nations met in New Delhi this week to restart the Early Progress Trade Agreement (EPTA) negotiations, focusing on technology, energy, and agriculture.

🌏 Background: The Frozen Talks

Trade negotiations had stalled in 2023 after political strains between the two countries.
However, improving diplomatic channels and growing business demand have brought both sides back to the table.

According to India’s Ministry of Commerce, bilateral trade reached USD 8.5 billion in 2024, and the goal is to double it by 2027.

📦 Key Sectors Under Discussion

Clean Energy: Collaboration in green hydrogen, renewable tech, and battery manufacturing.
Agriculture: Canada’s lentil and fertilizer exports to India; India’s rice and spice exports to Canada.
Technology & Startups: Joint investments in AI, fintech, and cybersecurity.
Education: Easier student visa norms and academic partnerships.
Defense: Cooperation on AI-driven drones and maritime security.

💬 Statements from Officials

“Trade is the bridge that connects people, not politics,” said Piyush Goyal, India’s Commerce Minister.
“Canada looks forward to stronger, more balanced economic relations,” added Mary Ng, Canadian Minister for International Trade.

Both leaders emphasized sustainable trade practices and the need for carbon-neutral supply chains.

💹 Economic Benefits

If signed, the EPTA could:

Create 1 lakh new jobs across sectors.
Reduce tariffs on over 6,000 goods categories.
Encourage mutual startup investments and tech innovation.
Strengthen food and energy security for both nations.

🌿 Sustainability Focus

2025’s negotiations highlight a Green Trade Pact, aiming to reduce carbon footprints in shipping and production.
Both nations are exploring joint research in clean energy and EV infrastructure.

📊 India-Canada Trade Snapshot (2024)

Sector	India’s Exports (USD bn)	Canada’s Exports (USD bn)
IT Services	2.1	0.5
Agriculture	1.6	2.3
Energy	0.8	1.2
Education & Tourism	1.0	1.4

🧠 Challenges Ahead

Visa processing delays affecting Indian students and workers.
Agricultural tariffs on pulses and dairy.
Political trust rebuilding post-2023 freeze.

Experts say steady business-to-business partnerships can outweigh political fluctuations and create a stable ecosystem.

🌍 Future Outlook

Analysts predict a 25 % rise in bilateral investments by 2026 if the EPTA progresses smoothly.
Indian IT companies are expanding to Toronto and Vancouver, while Canadian pension funds continue investing in India’s infrastructure and renewable projects.

🏁 Conclusion

The India-Canada Trade Revival 2025 reflects a shared desire for progress beyond politics.
By focusing on sustainable trade, innovation, and youth exchange, both nations are poised to enter a new era of economic partnership that benefits businesses and citizens alike.

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