India and Canada have renewed diplomatic and economic engagement with a view to revitalising bilateral trade relations after a period of strain. On Saturday, India’s Commerce and Industry Minister Piyush Goyal met with Canada’s Minister of International Trade, Maninder Sidhu, in New Delhi to discuss strategies to strengthen economic cooperation and restore momentum to trade talks.

The meeting signalled a mutual desire to identify new areas of collaboration and to build on the complementarities between the two economies.

Goyal emphasised that any future trade and investment partnership must be grounded in the principles of mutual respect, trust, and balance. He noted that both nations stand to gain from deeper commercial links that maximise the strengths of their respective industries.

Meanwhile, his Canadian counterpart highlighted growing opportunities for cooperation in emerging and high-value sectors such as clean technology, artificial intelligence, agriculture, and critical minerals—areas seen as instrumental to both countries’ sustainable and digital growth agendas.

The dialogue comes against the backdrop of stalled negotiations for a free trade agreement. In 2023, Canada had put talks on hold amid a diplomatic rift sparked by former Prime Minister Justin Trudeau’s allegations of Indian involvement in the killing of Hardeep Singh Nijjar, which India dismissed as “absurd.”

This pause disrupted progress made since the relaunch of trade negotiations in March 2022 under the Early Progress Trade Agreement (EPTA), intended as a precursor to a full-fledged Comprehensive Economic Partnership Agreement.

Despite political tensions, economic exchanges have shown resilience. India’s exports to Canada climbed by 9.8 percent to reach $4.22 billion in 2024–25 from $3.84 billion in the previous fiscal year. 

Imports, however, saw a modest decline of 2.33 percent to $4.44 billion from $4.55 billion during the same period. These figures underscore the potential for balanced growth if negotiations are revived and investment frameworks modernised.

The timing of the meeting is notable as it precedes the visit of Canadian Foreign Minister Anita Anand to New Delhi, signalling a possible thaw in bilateral relations. The engagement also builds on the understanding reached between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney during their talks on the sidelines of the G7 summit in Kananaskis, Canada, in June. That dialogue laid the foundation for renewed political communication and the resumption of economic collaboration.

Discussions on Saturday are being viewed as a pragmatic attempt by both governments to move beyond past tensions and rebuild trust through trade diplomacy. If progress continues, the EPTA could eventually serve as a stepping stone for a deeper economic partnership encompassing goods, services, and investment facilitation.

Both sides are expected to explore fresh cooperation mechanisms that align with shared priorities in sustainability, technology, and resource security.

Based On PTI Report