Policy Update
Riddhi Suthar
Background
The Canada–India Trade and Investment Forum (CITIF) was launched on 28 May 2026 by Piyush Goyal, Minister of India’s Commerce and Industry during the official visit to Canada. The Forum emerged against the backdrop of renewed bilateral engagement in 2026 and ongoing negotiations for a Comprehensive Economic Partnership Agreement (CEPA). The Forum serves as an institutional platform for enhancing business engagement, facilitating investment flows, and fostering new commercial partnerships between enterprises from both countries.
By expanding market access and generating new trade and investment opportunities, the Canada-India Trade and Investment Forum is anticipated to benefit exporters, businesses, investors, and small and medium-sized enterprises (SMEs). Additionally, it will help important industries including manufacturing, clean energy, technology, and agri-food.
Functions
Facilitating Business-to-Business (B2B) Partnerships
Encouraging direct communication between Canadian and Indian businesses is one of the Forum’s main goals. Businesses can find commercial opportunities, form alliances, and investigate joint ventures through business roundtables, networking events, trade delegations, and investment summits.
Supporting the Comprehensive Economic Partnership Agreement (CEPA)
Practical issues pertaining to tariffs, customs processes, regulatory compliance, investment protection, and career mobility can be communicated by businesses. In this way, the Forum bridges the gap between trade policy formulation and business realities. India ranks among Canada’s most significant economic partners and was Canada’s 7th largest bilateral trading partner in goods and services in 2024, accounting for approximately C$30 billion in total bilateral trade.
Promoting Bilateral Trade and Investment Flows
Indian companies can take advantage of the Canadian markets, while Canadian companies have more access to one of the fastest-growing major economies in the world. India and Canada’s bilateral commerce in goods and services reached US$23.66 billion in 2024, indicating the growing significance of their economic partnership. Merchandise sales alone totalled US$8.98 billion, up 10% increase from the previous year.
Strengthening Cooperation in Strategic and Emerging Sectors.
The Forum prioritises collaboration in sectors that are increasingly important for economic competitiveness and sustainable development. By focusing on these sectors, the Forum seeks to create long-term economic partnerships rather than merely expanding conventional merchandise trade.
Figure 1: Priority Sectors under the Canada–India Trade and Investment Forum (2026)
| Strategic Sector | Key focus area | Expected Outcome |
| Critical minerals | Lithium, cobalt, nickel, and and and and and rare earth elements | Strengthen EV and renewable energy supply chains |
| Clean Energy & Green Technologies | Renewable energy, hydrogen, clean-tech solutions | Support energy transition and climate goals. |
| Digital Technologies and Innovation | AI, fintech, digital services, innovation ecosystems | Enhance technological collaboration and innovation |
| Agri food and food processing | Agricultural trade, food security, value-added processing | Expand market access and food-sector cooperation |
| Advancedchains | Industrial production, logistics, supply-chain integration | Improve economic resilience and investment flows |
Source: Compiled by the author based on the Canada–India Joint Statement: 2026 Trade and Investment Forum(Government of Canada & Government of India, 2026).
https://www.international.gc.ca/country_news-pays_nouvelles/2026-05-28-india-inde.aspx?lang=eng&utm
Improving Market Access and Addressing Regulatory Barriers
One of the most practical functions of the Forum is identifying obstacles that hinder businesses from entering or expanding in each other’s markets. Different products standard, certification criteria, custom processes, investment laws and licensing systems are a few examples of these. According to the Government of Canada, total two-way merchandise trade reached C$13.6 billion in 2025, with Canadian exports valued at C$3.9 billion and imports from India at C$9.7 billion.
Enhancing Supply-Chain Resilience and SME Participation
The Forum improves economic security for both nations by promoting collaboration in key areas and reducing dependence on individual markets. In addition, it helps SMEs take advantage of trade and investment opportunities more successfully by providing them with better access to market data, business networks, and institutional support.
Promoting Long-Term Economic Cooperation and Knowledge Exchange
The Canada-India Trade and Investment Forum promotes economic cooperation, innovation, and technology transfer by facilitating the movement of qualified individuals, entrepreneurs, researchers, and service providers. The Forum seeks to promote long-term, sustainable economic collaboration between the two nations through ongoing involvement and knowledge sharing. Services trade also grew significantly in 2025. Canada’s service exports to India were $15.2 billion, an increase of 0.03% from 2024, with education‑related travel accounting for the largest share.
Performance
The extraordinary involvement of industry stakeholders is a key marker of early success. Under the leadership of Commerce Minister Piyush Goyal, Canada hosted the largest Indian delegation ever deployed anywhere in the world during the Forum’s May 2026 debut. Strong private sector optimism in revitalising economic ties through large-scale business presence. Canada ranked among India’s top 35 trading partners, highlighting significant scope for further expansion through CEPA and the Forum.
Economic ties held steady throughout 2023–2024 despite diplomatic tensions. The India-Canada Ministerial Dialogue on Trade and Investment reports that merchandise trade totalled US$8.98 billion in 2024, while bilateral trade in goods and services reached US$23.66 billion. Canada and India have linked the Forum with broader trade objectives, including a goal of increasing bilateral trade to approximately US$50 billion by 2030 through CEPA and enhanced business cooperation.
Canada’s direct investment stock in India reached C$5.6 billion in 2024, representing a 16.3% increase over 2023. Over 80 Canadian colleges and universities continue to collaborate with Indian academic institutions. Canada hosts over 1,000 active academic and research collaborations involving Indian institutions.
Canada and India have signed a Memorandum of Understanding (MoU) on Critical Minerals Cooperation between Canada’s Department of Natural Resources and India’s Ministry of Mines. During the 2026 Economic Reset, both countries reported progress on agreements involving critical minerals and uranium cooperation as part of a broader economic partnership aimed at reaching US$50 billion in bilateral trade by 2030.
Impact
One of the most immediate impacts of the Forum is the restoration of economic confidence between the two countries. The strained diplomatic relations between India and Canada during 2023–2025, slowed progress on trade negotiations. A comprehensive trade deal between the two nations could increase bilateral commerce by US$4.4–6.5 billion and boost Canada’s GDP by US$3.8–5.9 billion by 2035, according to estimations provided by the India Brand Equity Foundation (IBEF).
Canada remains a significant supplier of pulses and agri-food products to India. Renewed economic cooperation could stabilise agricultural trade flows and improve food security outcomes. Canada identified critical minerals as a priority partnership area, accelerating projects worth US$4.6 billion.
The 2026 Trade and Investment Forum involved the largest Indian business delegation ever sent abroad, demonstrating unprecedented private-sector engagement in building new commercial and supply-chain linkages. Beyond economics, the Forum contributes to broader strategic objectives. Canada seeks to strengthen engagement in the Indo-Pacific region, while India aims to diversify trade partnerships amid global economic uncertainty
Emerging Issues
The conclusion of CEPA is still being delayed despite the resumption of trade negotiations due to disputes over market access, agricultural products, services, intellectual property, and labour mobility. Although the Critical Minerals MoU and Forum commitments, concrete bilateral investments and supply agreements remain limited.
Large corporations dominate bilateral trade, while SMEs often face information, financing, and market-entry barriers. Insufficient Supply-Chain Integration makes it vulnerable to external shocks. As a newly established forum, there is no publicly available monitoring mechanism, performance dashboard, or measurable outcome framework as well as there is untapped innovation and technology collaboration.
Way forward
Governments of both countries should establish a time-bound roadmap for negotiations while businesses should provide sector-specific inputs on tariff and non-tariff barriers. India should facilitate investment approvals and exploration partnerships and Canada should improve market access for Indian firms in mining projects.
There is also a need for institutionalised economic dialogue mechanisms independent of political disagreements. Creation of SME focused trade facilitation programs is also essential and it can be done through Export Promotion Agencies that can provide market intelligence and matchmaking services.
The creation of the Forum Secretariat can facilitate annual progress reports with indicators on trade, investment, business participation, and project outcomes. Parliamentary Committees can periodically review implementation progress. Governments can create specialised research partnerships and funds for innovation.
References
- Business Standard. (2026, May 29). India andst economic ties. https://www.business-standard.com/external-affairs-defence-security/news/india-canada-launch-trade-and-investment-forum-to-boost-economic-ties-126052900396_1.html
- Global Affairs Canada. (2025, November). India–Canada joint statement: Ministerial dialogue on trade and investment. Government of Canada. https://www.canada.ca/en/global-affairs/news/2025/11/india-canada-joint-statement-2025-ministerial-dialogue-on-trade-and-investment.html
- Global Affairs Canada. (2025, November). Minister Sidhu concludes visit to India advancing trade and investment opportunities. Government of Canada. https://www.canada.ca/en/global-affairs/news/2025/11/minister-sidhu-concludes-visit-to-india-advancing-trade-and-investment-opportunities.html
- Global Affairs Canada. (2026, May 28). Canada–India Joint Statement: 2026 Trade and Investment Forum. Government of Canada. https://www.international.gc.ca/country_news-pays_nouvelles/2026-05-28-india-inde.aspx?lang=eng
- Government of Canada. (n.d.). Canada’s critical minerals strategic partnerships. https://www.canada.ca/en/campaign/critical-minerals-in-canada/our-critical-minerals-strategic-partnerships.html
- Government of Canada. (n.d.). Comprehensive Economic Partnership Agreement (CEPA) negotiations between Canada and India. https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/india-inde/cepa-apeg/index.aspx?lang=eng
- Government of Canada, & Government of India. (2026, May 28). Canada–India Joint Statement: 2026 Trade and Investment Forum. Ottawa, Canada. https://www.international.gc.ca/country_news-pays_nouvelles/2026-05-28-india-inde.aspx?lang=eng
- India Brand Equity Foundation. (2026). India–Canada trade relations. https://www.ibef.org/indian-exports/india-canada-trade
- Press Information Bureau. (2026, May 29). India and Canada launch the Canada–India Trade and Investment Forum (CITIF). Government of India. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2266457&lang=1®=20
- Prime Minister of Canada. (2026, March 2). Prime Minister Carney secures an ambitious new partnership with India focused on economic growth and strategic cooperation. Government of Canada. https://www.pm.gc.ca/en/news/news-releases/2026/03/02/prime-minister-carney-secures-ambitious-new-partnership-india-focused
- Reuters. (2025, November 28). India–Canada trade deal could guarantee some Canadian pulse sales, envoy says. https://www.reuters.com/world/india/india-canada-trade-deal-could-guarantee-some-canadian-pulse-sales-envoy-says-2025-11-28/
- Reuters. (2026, May 23). India’s Goyal to visit Canada with 150 business leaders to boost trade ties. https://www.reuters.com/world/india/indias-goyal-visit-canada-with-150-business-leaders-boost-trade-ties-2026-05-23/
- The Times of India. (2026, March 3). $50 bn trade target: India, Canada move closer to trade deal, finalise agreements on critical minerals and more. https://timesofindia.indiatimes.com/business/india-business/50-bn-trade-target-india-canada-move-closer-to-trade-deal-during-carneys-visit-finalise-agreements-on-critical-minerals-more/articleshow/128941329.cms
- The Tribune. (2026, May 23). Piyush Goyal set to visit Canada with 150-strong Indian business leaders for CEPA talks. https://www.tribuneindia.com/news/business/piyush-goyal-set-to-visit-canada-with-150-strong-indian-business-leaders-for-cepa-talks/
About the Contributor
Riddhi Suthar is a researcher and policy enthusiast with interests in public policy, governance, international relations, maritime affairs, and strategic studies. Their work focuses on evidence-based policy analysis, geopolitical developments, and emerging global challenges, with particular attention to India’s strategic and developmental priorities. She is engaged in analytical writing, policy research, and academic discussions related to governance, security, and international affairs.
Acknowledgement
The author extends sincere gratitude to the IMPRI team for their expert guidance and constructive feedback throughout the process.
Reviewed by Ameya Satam and Ananaya
Disclaimer
All views expressed in the article belong solely to the author and not necessarily to the organisation.
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