DELHI AND OTTAWA RACE TOWARDS A YEAR-END TRADE BREAKTHROUGH AS MODI AND CARNEY REKINDLE STRATEGIC PARTNERSHIP
October 14, 2026
Prime Minister Narendra Modi and his Canadian counterpart Mark Carney held a telephone conversation on Wednesday as India and Canada intensified negotiations to conclude a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026. The discussion signals renewed momentum in bilateral relations, with both governments seeking concrete progress in trade, energy, technology, security and people-to-people cooperation after a prolonged period of diplomatic tensions.
The conversation took place ahead of Canadian Foreign Minister Anita Anand’s scheduled arrival in India later on Wednesday. Her visit comes as Canada’s Minister for International Trade, Maninder Sidhu, is already in New Delhi leading what has been described as the largest Canadian trade delegation to India in 30 years.
Following the conversation, Modi said the two leaders had discussed building on the positive momentum in bilateral relations and delivering practical outcomes across key areas of their strategic partnership. He emphasised cooperation in trade, energy, technology, security and people-to-people exchanges, adding that India and Canada could contribute together towards a more stable and prosperous world.
The Canadian Prime Minister’s Office said both leaders welcomed the increased engagement between the two countries over the past year and reaffirmed their commitment to concluding negotiations on the proposed CEPA at the earliest opportunity. The agreement is intended to expand economic cooperation and support the ambitious objective of doubling bilateral trade by 2030.
The proposed trade pact has become a central component of efforts to strengthen economic ties. Negotiations were revived as both governments sought to rebuild confidence and restore the relationship following a period of serious diplomatic friction. The latest telephone conversation reflects their determination to maintain political momentum while negotiators work through the outstanding issues required to finalise the agreement.
The two leaders also discussed the effects of geopolitical instability on the Indo-Pacific region and the importance of developing reliable partnerships in energy and agriculture. These discussions underline the broader strategic considerations shaping bilateral relations, extending beyond trade in goods to include supply-chain security, technological cooperation and economic resilience.
Modi is scheduled to visit Canada in December, a trip expected to provide another opportunity to advance the partnership and review progress towards the trade agreement. The precise schedule of the visit has yet to be finalised publicly, but it is expected to take place against the backdrop of the continuing negotiations.
Anand’s visit is the first stop on a two-country tour, with the United Arab Emirates scheduled as the second destination. In India, she is expected to meet External Affairs Minister S. Jaishankar to discuss trade, energy, people-to-people ties, security and defence cooperation. Her discussions are likely to form part of the wider diplomatic effort to consolidate the renewed engagement between New Delhi and Ottawa.
Meanwhile, Sidhu met Commerce and Industry Minister Piyush Goyal in New Delhi to review progress on the CEPA negotiations. Goyal described the discussion as productive and emphasised the importance of a balanced and mutually beneficial agreement that would improve market access and unlock additional opportunities for trade and investment.
The meeting followed the conclusion of the fifth round of negotiations in Canada last week. Both sides are working towards completing the agreement by the end of this calendar year, although reaching that deadline will depend on resolving the remaining negotiating issues and securing agreement on the final terms.
For India, the proposed pact offers an opportunity to widen access to the Canadian market and strengthen commercial links across manufacturing, services, technology and investment. For Canada, deeper engagement with India could expand business opportunities in one of the world’s major economies and strengthen cooperation with an important Indo-Pacific partner.
The renewed diplomatic activity marks a significant phase in the effort to rebuild India-Canada relations. With the two prime ministers reaffirming their commitment, senior ministers holding discussions and trade negotiators completing another round of talks, both countries are attempting to convert improved political engagement into a substantive economic agreement.
The year-end deadline will now test whether that momentum can be translated into a completed pact. If negotiations conclude successfully, the CEPA could provide a broader framework for market access, investment and long-term commercial cooperation while reinforcing the strategic partnership that New Delhi and Ottawa are seeking to rebuild.
