India and Canada Launch Economic Dialogue to Boost Trade

Indian Finance Minister Nirmala Sitharaman and Canadian Finance Minister Francois-Philippe Champagne launched the inaugural India-Canada Economic and Financial Dialogue in Toronto on August 27, 2026. The two nations agreed to explore a Bilateral Investment Treaty and set a target to increase bilateral trade to CAD 70 billion by 2030. Both countries aim to conclude negotiations for a Comprehensive Economic Partnership Agreement by the end of 2026.

The ministers focused on diversifying supply chains through collaboration on critical minerals, food security, and energy resources, including Canadian LNG, LPG, crude oil, and uranium. They also discussed modernizing financial systems, specifically the potential expansion of India's Unified Payments Interface (UPI) in Canada to improve merchant payments and cross-border remittances, alongside the role of Canadian pension funds in India.

This economic push follows a diplomatic reset initiated by Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney. The reset began after Carney took office in March 2025, following severe tensions over the killing of Hardeep Singh Nijjar. Minister Champagne framed the partnership as part of Canada's strategy to diversify trade amid a trade war with the United States, while Minister Sitharaman noted that the dialogue provides predictability amid global geopolitical uncertainty. The next dialogue is scheduled for 2027.