India has offered to begin talks with Canada on a Bilateral Investment Treaty at the earliest, as both countries look to deepen economic ties and increase bilateral trade to CAD 70 billion, or INR 4.65 lakh crore, by 2030.The proposal came during the first Canada-India Finance Ministers’ Economic and Financial Dialogue, where Finance Minister Nirmala Sitharaman met her Canadian counterpart Francois-Philippe Champagne.
India ready to begin investment treaty talks
The two ministers discussed ways to strengthen trade and investment ties and agreed on several areas of economic cooperation.“India expressed its readiness to initiate negotiations on a Bilateral Investment Treaty at the earliest,” the joint statement issued after the meeting said.A Bilateral Investment Treaty is an agreement between two countries designed to provide greater protection and certainty to investors from both sides.The meeting followed a commitment made by Canadian Prime Minister Mark Carney and Prime Minister Narendra Modi in New Delhi in March 2026 to improve economic and financial cooperation.The two countries have also agreed to work towards completing negotiations for a Comprehensive Economic Partnership Agreement by the end of 2026.
Trade target set at CAD 70 billion
Sitharaman and Champagne reaffirmed their goal of taking bilateral trade between India and Canada to “CAD 70 billion / INR 4.65 lakh crore by 2030.”They also welcomed the increasing investment links between the two countries, particularly the presence of Canadian pension funds and other institutional investors in India.The ministers discussed ways to make it easier for financial institutions and large investors from both countries to work together. They also looked at investment opportunities in sectors where both countries have common interests.The discussions included the need for domestic tax rules that provide “stability and certainty to taxpayers in respect of their investments”.
UPI and financial cooperation
Financial technology and the wider financial sector were another major part of the talks. The two sides discussed cooperation in payments, financial stability, FinTech, capital markets and efforts to tackle financial crime.They agreed to encourage discussions between relevant authorities on cross-border remittances and payments made by merchants.Canada could also see wider use of India’s Unified Payments Interface through partnerships between UPI and Canadian payment service providers.According to the joint statement, this could help deliver “faster, more efficient and cost-effective payments” and support trade, tourism, education and small and medium-sized businesses.Focus on critical mineralsIndia and Canada also discussed economic security and the need for reliable and diversified supply chains.Both sides agreed to explore cooperation in strategic areas, including critical minerals, which are important for industries such as clean energy, electronics and advanced technology.After the ministerial dialogue, Sitharaman and Champagne held joint discussions with representatives from Canada’s financial services, FinTech, technology, artificial intelligence, infrastructure, and energy and natural resources sectors.The meetings focused on areas where businesses and financial institutions from both countries could increase long-term cooperation.
India-Canada trade and CEPA talks
The latest discussions come as economic ties between India and Canada have gained momentum in recent months. India-Canada merchandise trade was around USD 8 billion in 2025-26. India’s exports to Canada stood at USD 4.67 billion, while imports were USD 3.28 billion, according to the Ministry of Commerce and Industry.The two countries are currently negotiating a Comprehensive Economic Partnership Agreement, or CEPA. They have set a separate target of increasing bilateral trade to USD 50 billion by 2030.Sitharaman is on an official visit to Canada and the United States from August 25 to September 2. During her time in Canada, she is also meeting Canadian businesses and taking part in investment and business roundtables focused on areas including energy, artificial intelligence and critical minerals.The next Canada-India Economic and Financial Dialogue is expected to be held in 2027. Both sides said they would continue regular discussions aimed at achieving “concrete cooperation and tangible outcomes” in areas of mutual interest.
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