Merchandise trade between India and Canada recorded double-digit growth from January to August 2026, even as negotiations for the Comprehensive Economic Partnership Agreement (CEPA) continue. The increase comes ahead of Prime Minister Narendra Modi’s scheduled bilateral visit to Canada in the second week of December.
During the first eight months of 2026, Canada’s merchandise exports to India reached CA$3.03 billion, representing a 36.7 per cent year-on-year increase, according to data from Statistics Canada highlighted by the Asia-Pacific Foundation of Canada.
The rise was the sixth-largest recorded among Canada’s 27 principal trading partners as defined by Statistics Canada. Metals and minerals accounted for the largest share of Canadian exports to India at 41 per cent, followed by agri-food products at 16.9 per cent.
Canadian imports from India stood at CA$7.05 billion during the same period, marking a 10.2 per cent increase over the previous year. For the full year in 2025, Canada exported merchandise worth CA$3.9 billion to India, while imports from India totalled CA$9.7 billion.
The trade figures have emerged during a period of renewed diplomatic and commercial engagement between the two countries. Vina Nadjibulla, co-founder and CEO of the Centre for Strategic Statecraft, described the period as one of the “biggest weeks” in bilateral relations, citing growing political support and momentum.
Nadjibulla said discussions would move forward on several fronts beyond CEPA, including mobility-related matters.
Trade mission secures 34 agreements
Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney spoke by telephone on Tuesday. At the same time, Canadian Foreign Affairs Minister Anita Anand visited India, while International Trade Minister Maninder Sidhu led a trade delegation of nearly 300 participants.
Following the Team Canada Trade Mission, Sidhu said 34 commercial agreements had been secured for Canadian businesses, with a combined value of nearly CA$300 million.
The agreements cover areas including energy, critical minerals and aerospace. Sidhu said the mission had helped Canadian companies establish business connections that could support the long-term economic relationship with India.
Sidhu also held talks with India’s Commerce and Industry Minister Piyush Goyal to advance negotiations on the CEPA. Five rounds of discussions have been completed, and negotiators are expected to meet twice more as the two sides work towards concluding the agreement by December, the deadline set by Modi and Carney.
Sidhu and Goyal have met 10 times since May 2025, according to Global Affairs Canada.
With Modi’s bilateral visit to Canada planned for December, the recent rise in trade and intensified diplomatic engagement point to continued progress in the renewed India-Canada relationship.
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