India has expressed its readiness to begin negotiations on a Bilateral Investment Treaty with Canada at the earliest opportunity.

This announcement came as Finance Minister Nirmala Sitharaman and Canadian Finance Minister Francois-Philippe Champagne concluded the inaugural Canada-India Finance Ministers' Economic and Financial Dialogue.

The two sides agreed to work towards expanding bilateral trade to CAD 70 billion, equivalent to ₹4.65 lakh crore, by 2030, according to the official joint statement released by the Ministry of Finance.

The dialogue focused on strengthening economic and financial cooperation, with emphasis on enhanced trade and investment. It builds upon the commitment made by Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi during their meeting in New Delhi in March 2026, where both leaders pledged to strengthen bilateral economic and financial cooperation and to conclude the Comprehensive Economic Partnership Agreement (CEPA) talks by the end of 2026.

India’s readiness to initiate negotiations on a Bilateral Investment Treaty was highlighted as a key step in advancing economic ties. The ministers exchanged views on global macroeconomic developments and domestic policy priorities, while underlining the mutual benefits of stronger bilateral economic and investment relations. They reaffirmed their aspiration to expand trade to CAD 70 billion by 2030.

The dialogue also welcomed the growing investment relationship between India and Canada, recognising the role of long-term institutional capital in strengthening bilateral ties. The ministers noted the substantial presence of Canadian pension funds and other institutional investors in India and discussed measures to facilitate greater engagement between Indian and Canadian financial institutions and investors.

Tax legislation was another area of focus, with both sides stressing the importance of stability and certainty for taxpayers in respect of their investments. They explored commercially viable investment opportunities across sectors of mutual interest, including energy, infrastructure, and technology.

Financial-sector cooperation featured prominently, with discussions on payments modernisation, financial stability, FinTech innovation, capital markets development, and measures to combat financial crime. The ministers agreed to support engagement between relevant authorities and stakeholders on cross-border remittances and merchant payments.

They also welcomed opportunities to broaden the use of India’s Unified Payments Interface (UPI) in Canada through partnerships with payment service providers. Such efforts are expected to contribute to faster, more efficient, and cost-effective payments, while supporting bilateral trade, tourism, education, and the growth of small and medium-sized enterprises in both countries.

On economic security, the ministers recognised the importance of resilient and diversified supply chains for sustainable growth. They agreed to pursue cooperation in strategic sectors, including critical minerals, which are vital for energy transition and advanced technologies.

Following the dialogue, Sitharaman and Champagne participated in joint engagements with representatives from Canada’s financial services, FinTech, technology, artificial intelligence, infrastructure, and energy and natural resources sectors.

These engagements highlighted shared priorities and opportunities for long-term growth and expanded collaboration among businesses, financial institutions, and other stakeholders.

The ministers reaffirmed their commitment to strengthening bilateral economic and financial ties through regular dialogue and advancing concrete cooperation and tangible outcomes in areas of mutual interest. The next Canada-India Economic and Financial Dialogue is scheduled for 2027.

According to the Ministry of Finance, the dialogue aims to strengthen cooperation in areas such as macroeconomic developments, the financial sector, bilateral investment, and shared international economic priorities. Sitharaman is on an official visit to Canada and the United States from August 25 to September 2.

During the Canada leg, she is participating in investment and business roundtables and holding meetings with Canadian companies, with discussions focusing on energy, artificial intelligence, and critical minerals.

Economic engagement between India and Canada has gathered pace in recent months. Bilateral merchandise trade stood at around $8 billion in 2025-26, with India’s exports at $4.67 billion and imports at $3.28 billion, according to the Ministry of Commerce and Industry. The two countries are also negotiating CEPA, with a target of raising bilateral trade to $50 billion by 2030.

ANI