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Canada is increasingly optimistic that it can finalize a comprehensive economic partnership agreement (CEPA) with India before the end of the year, with energy, nuclear power and critical minerals emerging as major areas of cooperation.
Canadian Trade Minister Maninder Sidhu said during a visit to Mumbai that negotiations could be completed within the coming months. Prime Minister Mark Carney had previously said during a March visit to New Delhi that Canada and India were targeting a free trade agreement by year-end.
“I’m feeling very, very optimistic and energetic that we can get it done in the coming months,” Sidhu told Reuters.
Indian trade negotiators are expected to travel to Canada next month, while leaders of the two countries could meet on the sidelines of the G20 gathering in December, according to Sidhu.
Energy is expected to feature prominently in Canada-India trade negotiations. Canada launched a Shell-led liquefied natural gas export facility last year, while another five LNG projects are at different stages of development.
Sidhu said Canadian officials are discussing opportunities for Indian companies to access those projects, invest in them and secure long-term LNG supplies. He did not provide details about the companies involved or potential investment amounts.
Canada and India are also exploring deeper nuclear energy cooperation as New Delhi seeks to substantially expand its nuclear power capacity. Sidhu said Canada’s long-established nuclear industry could help develop supply chains supporting India’s expansion plans.
Critical minerals represent another potential growth area. Sidhu said major Indian companies, including Reliance Industries, Mahindra and Mahindra and JSW Group, are exploring investments in Canadian critical mineral projects.
Such investments could help Indian companies secure access to strategically important resources while strengthening supply-chain resilience. Sidhu said businesses are increasingly considering co-investment opportunities as geopolitical tensions place greater pressure on global supply chains.
A Canada-India CEPA would mark a significant expansion of bilateral economic ties, potentially opening new opportunities across trade, energy, minerals and investment.
