• Source:JND
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India-Canada trade talks: India and Canada on Thursday signaled a decisive shift towards rebuilding their strained relationship, with both sides expressing readiness to revive stalled trade negotiations and expand cooperation across high-growth sectors. This development comes after a prolonged diplomatic freeze that began in 2023.

Talks Mark Major Thaw In Bilateral Ties

Canadian International Trade Minister Maninder Sidhu, currently on a three-day visit to India, met Commerce and Industry Minister Piyush Goyal in New Delhi for the 7th India–Canada Ministerial Dialogue on Trade and Investment (MDTI).

Sidhu described the meeting as “very productive”, noting that discussions touched on critical minerals, clean energy, aerospace, artificial intelligence, agriculture, and broader investment opportunities.

According to officials, the talks represent one of the most significant high-level engagements since Canada paused trade negotiations two years ago after accusing India of involvement in the killing of Canadian Sikh separatist Hardeep Singh Nijjar, an allegation New Delhi firmly rejected.

Focus On Critical Minerals, Energy, Supply Chain Resilience

Sidhu told Reuters that both sides are in “early discussions to restart the process” of trade talks under a new framework, taking into account shifting global economic conditions and the impact of steep US tariffs on both economies.

The Canadian minister said Prime Minister Mark Carney’s government has brought “new focus and mandate” to stabilise relations with India, a key market for Canada. Carney and Prime Minister Narendra Modi had met on the sidelines of the G7 Summit earlier this year, setting the tone for renewed engagement.

India and Canada also agreed to deepen cooperation in areas considered essential for long-term economic security. These include nutritional security, health sector partnerships, supply chain resilience, clean technology, and expanded market access for businesses in both countries. Sidhu emphasised Canada’s strategic advantage in the global energy transition, saying the country “has every element needed to build an electric battery”, and welcomed Indian investments in mining and infrastructure linked to critical minerals.

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Bilateral Trade Is Showing Steady Growth

Two-way trade continued to grow despite diplomatic tensions.

•  India–Canada bilateral trade in goods and services stood at USD 18.38 billion in 2023.

• Canada's services exports to India reached USD 16 billion in 2024, making India a priority market.

• Over 1.8 million Canadians are of Indian origin, and nearly 393,000 Indian students were enrolled in Canadian institutions last year, the highest foreign student group in the country.

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During his visit, Sidhu also met senior executives from Indian conglomerates, including the Tata Group, who reportedly showed interest in expanding operations in Canada. Minister Goyal has been invited to lead a trade and investment delegation to Canada, signalling fresh momentum.

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