India-Canada trade deal: What’s in it for whom?

India and Canada are nearing the completion of a free trade agreement (FTA) by the end of 2026. A high-level Canadian trade delegation, including Trade Minister Maninder Sidhu, is currently in India from October 12 to 17 to finalize the deal ahead of Prime Minister Narendra Modi's visit to Canada in December. The goal of the FTA is to increase two-way trade between the two countries to $50 billion by 2030.

India's exports to Canada have increased by 10.63% to $4.67 billion in 2025-26, while imports from Canada have decreased by 26.14% to $3.28 billion. India's main exports to Canada include pharmaceuticals, machinery parts, iron and steel, electronics, organic chemicals, jewelry, clothing and textiles, seafood, engineering goods, and auto parts. Its main imports from Canada include pulses, fertilizers like potash, mineral fuels, wood pulp, diamonds, aircraft parts, paper, and metal scrap.

Services are also a significant part of the relationship, with bilateral services trade standing at C$19.62 billion in 2025, with India importing C$15.17 billion and exporting C$4.45 billion. Canada's main services exports to India include telecommunications, computer and information services, and other business services.

Both sides aim to diversify their trade beyond the US, with India seeking better access to Canada's high-income market of over 41 million people, and Canada looking for a long-term buyer and a growing market for uranium, LNG, critical minerals, and forest products. However, the specifics of what each side is offering in the FTA remain undisclosed.