During the inaugural Canada‑India Finance Ministers’ Economic and Financial Dialogue, India’s Finance Minister Nirmala Sitharaman announced that New Delhi is ready to launch negotiations on a Bilateral Investment Treaty (BIT) with Canada at the earliest possible date. The declaration was part of a broader agenda to deepen economic ties and push bilateral trade to CAD 70 billion (approximately INR 4.65 lakh crore) by 2030.
The joint statement released after the meeting with Canadian Finance Minister François‑Philippe Champagne highlighted several areas of cooperation, ranging from investment protection to financial technology, and underscored a shared ambition to broaden trade and investment links.
Investment treaty and trade ambitions
A Bilateral Investment Treaty is designed to give investors from both nations greater certainty and protection for their cross‑border investments. Sitharaman’s readiness to begin BIT talks follows a commitment made earlier in the year by Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi in New Delhi, where both leaders pledged to enhance economic and financial collaboration.
Alongside the BIT, the two countries are also working toward concluding a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026. The CEPA is expected to serve as a wider framework for trade, services and investment, with a separate target of reaching USD 50 billion in bilateral trade by 2030.
Current merchandise trade between the two economies stood at roughly USD 8 billion in the fiscal year 2025‑26, according to India’s Ministry of Commerce and Industry. Of that total, Indian exports to Canada were valued at USD 4.67 billion, while imports from Canada amounted to USD 3.28 billion.
Financial sector cooperation and UPI expansion
Financial technology and the broader financial sector featured prominently in the dialogue. Both sides discussed ways to improve cooperation in payments, financial stability, FinTech, capital markets and the fight against financial crime. A specific focus was placed on facilitating cross‑border remittances and merchant payments.
Canada expressed interest in leveraging India’s Unified Payments Interface (UPI) through partnerships with Canadian payment‑service providers. Sitharaman and Champagne noted that wider UPI usage could deliver faster, more efficient and cost‑effective payments, thereby supporting trade, tourism, education and small‑ and medium‑sized enterprises.
The ministers also emphasized the need for domestic tax rules that provide “stability and certainty to taxpayers in respect of their investments.” Such regulatory clarity is seen as essential for encouraging financial institutions and large investors to operate more freely across borders.
Strategic sectors: critical minerals and technology
Beyond finance, the dialogue addressed economic security and the importance of diversified supply chains. Both countries agreed to explore cooperation in strategic areas such as critical minerals, which are vital for clean‑energy technologies, electronics and advanced manufacturing.
Following the ministerial talks, Sitharaman and Champagne held joint discussions with representatives from Canada’s financial services, FinTech, technology, artificial intelligence, infrastructure, and energy and natural‑resources sectors. The purpose of these meetings was to identify concrete opportunities for long‑term collaboration between businesses and financial institutions on both sides.
During her official visit to Canada and the United States from August 25 to September 2, Sitharaman is scheduled to meet Canadian business leaders and take part in investment and business roundtables that will focus on energy, artificial intelligence and critical minerals, among other topics.
The next Canada‑India Economic and Financial Dialogue is slated for 2027. Both sides affirmed their intention to maintain regular discussions aimed at achieving “concrete cooperation and tangible outcomes” in areas of mutual interest.
Overall, the agreements reached at the inaugural dialogue signal a significant step forward in the India‑Canada partnership. By committing to a fast‑track BIT, targeting a CAD 70 billion trade volume by 2030, and expanding cooperation in finance, technology and critical minerals, the two nations are laying the groundwork for a deeper, more resilient economic relationship.
Be First to Comment