India, Canada could sign investment protection pact by end of year: Sitharaman

India and Canada are considering signing an investment protection pact by the end of the year, according to Finance Minister Nirmala Sitharaman. During her three-day visit to Toronto, Sitharaman announced that negotiators are working towards concluding the agreement in time for the end of the year. The timeline will depend on the agreement of Canadian Finance Minister François-Philippe Champagne.

The two Finance Ministers are set to launch the inaugural Economic and Financial Dialogue in Toronto on Thursday. The investor protection agreement is part of broader negotiations for a comprehensive economic partnership agreement (CEPA), which Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney aim to finalize by the end of the year.

Sitharaman emphasized that financial investment protection is a crucial aspect of the relationship between the two countries. She highlighted the transformation in bilateral ties since Carney took office in March 2025 and pointed out the shared values, traditions, and parliamentary models of India and Canada. Sitharaman sees India and Canada as natural partners and believes the countries have a chance to build a deeper and more diversified financial partnership beyond trade and investment.