India, Canada might hold FTA talks in April or May
What's the story
India and Canada are gearing up for the first round of formal talks on their proposed Free Trade Agreement (FTA) in April or May, Commerce Secretary Rajesh Agrawal has said. The announcement comes as a major step toward strengthening economic ties between the two nations after a period of diplomatic tensions in 2023.
Preparatory talks
Virtual discussions ongoing
Agrawal said that both sides are already engaged in virtual discussions. These talks are aimed at laying down the ground rules for various chapters and track leads, so they can start their respective discussions. He further clarified that while the first round of talks could happen in April or May, the exact dates are yet to be finalized.
Agreement
CEPA terms of reference signed earlier this month
Earlier this month, India and Canada inked the Terms of Reference for a Comprehensive Economic Partnership Agreement (CEPA). The signing was done during Canadian Prime Minister Mark Carney's visit to New Delhi. The two countries hope to finalize the deal by late 2026 and significantly boost their bilateral trade, which currently stands at less than $10 billion annually in goods.
Trade expansion
New markets for Indian exports
The CEPA deal could open up new markets for Indian exports such as medicines, steel, textiles, and chemicals. For Canada, it would be an opportunity to diversify its trading partners in light of changing global politics. Both countries are also establishing new forums to keep business leaders engaged and ensure everyone is aligned on future growth plans.
UK trade deal
FTA with UK to be operational by April
Separately, a government official has said that India's Free Trade Agreement (FTA) with the United Kingdom is likely to become operational in April. The ratification process by the UK Parliament is expected to be completed by then. India and the UK had inked the Comprehensive Economic and Trade Agreement (CETA) in July 2025 after almost three years of negotiations.