Canadian Prime Minister Mark Carney has said trade negotiations with India are making “good progress”, signalling a significant acceleration in economic engagement between New Delhi and Ottawa as both sides work towards concluding a Comprehensive Economic Partnership Agreement (CEPA) by the end of the year. Carney also indicated that Prime Minister Narendra Modi is expected to visit Canada around December, potentially coinciding with the completion of the trade deal.
Speaking at a news conference on, September 23, on the sidelines of the United Nations General Assembly, Carney said India and Canada were working towards completing the trade negotiations by the G20 summit scheduled for December 14-15 in Miami. He said he and Modi had committed to making every effort to conclude the negotiations by the summit.
“We are making good progress in our trade negotiations with India,” Carney said, adding that India, to his understanding, had confirmed Modi’s visit to Canada around that period, although the precise date had not yet been finalised.
The comments come after India and Canada completed the fourth round of CEPA negotiations in New Delhi last week. The next round of trade talks is scheduled to begin on October 5, as both governments seek to maintain momentum and accelerate negotiations. Indian Commerce and Industry Minister Piyush Goyal has described the coming period as important for the bilateral relationship.
India-Canada trade talks gather momentum
The renewed push for a trade deal reflects the expanding economic significance of India for Canada. Ottawa has set a target of doubling its trade with markets outside the United States over the next decade, with India identified as an important part of that strategy. Canada has also set an objective of more than doubling two-way India-Canada trade to $70 billion annually by 2030.
According to Global Affairs Canada, four rounds of negotiations have already been completed, while officials from both countries are continuing discussions with the shared objective of concluding the CEPA by the end of 2026. Two-way goods and services trade between India and Canada reached $30.4 billion in 2025. Canadian merchandise exports to India stood at $3.9 billion, while imports from India reached $9.7 billion.
Just in: PM Modi will be visiting Canada in December, Canada PM Mark Carney says
Terms India ties "exceptionally important", pointing to "good progress" on larger trade pact- CEPA.
Vdo ctsy: CPAC pic.twitter.com/JRmFyO1WXc
— Sidhant Sibal (@sidhant) September 23, 2026
The latest phase of trade negotiations is also being accompanied by discussions on wider economic cooperation. Areas of interest include energy, critical minerals, technology, aerospace and investment. Canadian officials have been seeking greater access to India’s large and expanding market, while Indian companies are exploring opportunities linked to Canada’s resources and strategic sectors.
The renewed economic engagement follows the diplomatic rupture between India and Canada after the 2023 killing of Canadian Sikh activist Hardeep Singh Nijjar in British Columbia. Former Prime Minister Justin Trudeau alleged a possible link between Indian government agents and the killing, but his government did not provide the concrete evidence repeatedly sought by New Delhi, which rejected the allegation and accused Ottawa of harbouring pro-Khalistan separatist elements.
Subsequent developments further weakened the allegation: a 2026 US indictment accused organised-crime figures Lawrence Bishnoi and Goldy Brar of directing Nijjar’s killing, without alleging Indian government involvement.
Since becoming prime minister, Carney has pursued a reset in relations with India. His visit to India earlier this year was the first bilateral visit by a Canadian prime minister since 2018. The latest trade push indicates that economic cooperation has become a central component of the effort to rebuild bilateral ties.
The Globe and Mail has reported that Modi is expected to visit Canada in December for the signing of a trade agreement, citing India’s High Commissioner to Canada, Dinesh Patnaik. Patnaik also indicated that the visit could include agreements covering areas such as defence and aerospace, alongside further commitments under the Talent and Innovation Strategy.
New Delhi accelerates Mexico trade negotiations
While India-Canada trade talks have gained fresh momentum, New Delhi is simultaneously stepping up efforts to deepen its commercial relationship with Mexico.
The Japan Times reported on September 23 that India is accelerating trade talks with both Canada and Mexico as the three economies seek to expand their markets and partnerships amid disruptions caused by US tariff policies. According to the report, New Delhi is finalising a framework with Mexico that would allow formal trade negotiations to begin.
The emerging India-Mexico trade negotiations could open another major channel for Indian businesses seeking greater access to the Latin American market. Mexico, according to people familiar with the discussions cited by The Japan Times, is seeking improved access to India’s market for products including tequila, fruit and automobile components.
A productive interaction with Mr. Marcelo Ebrard (@M_Ebrard), Secretary of Economy, Mexico.
Discussed avenues to deepen India-Mexico economic engagement, boost trade and investment, and promote industry collaboration to unlock new business opportunities in both countries. pic.twitter.com/mw5Lfz449k
— Piyush Goyal (@PiyushGoyal) March 21, 2026
India, meanwhile, is seeking lower barriers in Mexico for key sectors including automobiles, auto parts and steel. The focus on these sectors gives the negotiations a strong industrial and manufacturing dimension, particularly as Indian companies continue to expand their international footprint.
The Japan Times reported that Mexico’s Economy Ministry confirmed that there was ongoing analysis for a potential deal, while stressing that there was no concrete or final proposal at that stage.
India’s engagement with Mexico comes against a backdrop of expanding bilateral commerce. Indian exports to Mexico include vehicles, motorcycles, auto components, machinery, pharmaceuticals, chemicals and steel-related products. The trade relationship therefore offers considerable scope for Indian manufacturers and exporters to strengthen their presence in the Latin American economy.
India broadens its trade partnerships
The parallel movement on Canada and Mexico reflects a broader expansion of India’s trade diplomacy. Rather than relying on a limited group of major markets, New Delhi is pursuing opportunities across North America, Europe, Latin America and other regions.
The India-Canada CEPA is now entering a more intensive phase, with the fifth round of negotiations scheduled for October 5. The two governments are seeking to narrow differences and accelerate work ahead of the year-end target.
For Canada, the growing emphasis on India is closely connected to its objective of reducing dependence on the US market. Carney has also pursued closer commercial engagement with Europe and reached an agreement with China earlier this year involving limited Chinese electric-vehicle imports in exchange for lower Chinese tariffs on Canadian canola.
Next 90 days will be a "defining period" in Canada, India ties says Indian trade minister Piyush Goyal as both sides decide to "fastrack" talks for Comprehensive Economic Partnership Agreement (CEPA). pic.twitter.com/Z7jQmuerKq
— Sidhant Sibal (@sidhant) September 21, 2026
For India, meanwhile, expanding trade negotiations with Canada and Mexico provide additional avenues for exports, investment and market access. The developments also underline New Delhi’s expanding role in shaping new commercial partnerships at a time when global trade is being reorganised by tariffs, supply-chain pressures and changing economic alignments.
With the next India-Canada negotiations beginning in October and a possible Modi visit to Canada in December, the coming months could see the India-Canada trade deal move towards its final stage. At the same time, the emerging India-Mexico framework is placing another major market on New Delhi’s expanding trade agenda.
