India-Canada Trade Talks Make ‘Good Progress’, Deal Targeted by G20: Carney

Prime Minister Narendra Modi with Canadian Prime Minister Mark Carney during their meeting in New Delhi in March 2026. India and Canada are seeking to conclude negotiations on a Comprehensive Economic Partnership Agreement by the end of the year, with Carney saying talks are making “good progress”. Photo: Government of Canada/PMO.

Canadian Prime Minister says both sides are working towards concluding trade negotiations by mid-December; Modi visit to Canada expected around G20 period

Key Highlights

• Canadian PM Mark Carney says India-Canada trade negotiations are making “good progress.”
• The two countries are aiming to conclude negotiations by the G20 summit in mid-December.
• Carney says he understands that Prime Minister Narendra Modi will visit Canada around that period, although the exact date has not been finalised.
• India and Canada formally launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA) earlier this year.
• The two governments have set an ambition of expanding bilateral trade to CAD 70 billion (₹4.65 lakh crore) by 2030.
• The accelerating economic engagement marks a significant shift after the serious diplomatic tensions that affected bilateral relations in recent years.

Toronto: India and Canada are moving closer towards a comprehensive trade agreement, with Canadian Prime Minister Mark Carney saying negotiations are making “good progress” and that both countries are seeking to wrap up talks around the G20 summit in mid-December.

Speaking on Tuesday, September 22 , 2026 on the sidelines of the United Nations General Assembly, Carney said the relationship with India was “exceptionally important” and indicated that the two sides were working towards reaching an agreement before the end of the year.

“We are making good progress in our trade negotiations with India,” Carney said.

The Canadian Prime Minister also said that, to his understanding, India had confirmed that Prime Minister Narendra Modi would visit Canada around the time of the G20 summit. The precise date, however, has yet to be finalised.

From Diplomatic Strain to Expanding Economic Engagement

The progress in trade negotiations represents a notable turnaround in India-Canada relations after a period of severe diplomatic strain.

Relations deteriorated sharply in 2023 after then Canadian Prime Minister Justin Trudeau alleged a potential link between Indian government agents and the killing of Canadian Sikh activist Hardeep Singh Nijjar in British Columbia. India rejected the allegation and accused Canada of allowing pro-Khalistan extremist activity on its soil.

Since Carney took office, however, the two governments have progressively restored high-level engagement, with trade, energy, technology and investment becoming important areas of renewed cooperation.

Carney made a bilateral visit to India in March 2026 — the first by a Canadian prime minister since 2018. During talks in New Delhi, Carney and Modi agreed to accelerate negotiations for a Comprehensive Economic Partnership Agreement and seek its conclusion during 2026.

The two leaders met again on the sidelines of the G7 Summit in France in June, where they reviewed economic cooperation, including developments involving LNG, LPG and metallurgical coal.

Bigger Trade Ambition

The proposed CEPA is intended to provide a broader framework for trade and investment between the two economies.

In their March joint statement, Modi and Carney backed an ambition to expand bilateral trade to CAD 70 billion, equivalent to approximately ₹4.65 lakh crore, by 2030. The two sides also confirmed the formal launch of CEPA negotiations and committed themselves to concluding the process by the end of 2026.

Energy has emerged as one of the important areas of the renewed partnership. During Carney’s India visit, the two countries announced cooperation covering LNG, LPG, uranium, solar energy, hydrogen and critical minerals. Canada also announced a uranium supply agreement valued at $2.6 billion involving Cameco and India.

The relationship is also expanding into artificial intelligence, advanced technology, education, research and critical-mineral supply chains.

December Could Mark Another Important Step

Carney’s latest remarks indicate that the coming months could be significant for both the trade negotiations and high-level political engagement.

Canadian International Trade Minister Maninder Sidhu said last week that Ottawa was optimistic about concluding CEPA negotiations by the end of 2026, with Indian negotiators expected to visit Canada as the process moves forward.

A Modi visit to Canada around the G20 period would add another high-level engagement to a relationship that has moved rapidly towards renewed economic cooperation during 2026.