India has formally offered to begin negotiations on a Bilateral Investment Treaty (BIT) with Canada “at the earliest”, as the two countries set an ambitious goal to lift bilateral trade to CAD 70 billion (about ₹4.65 lakh crore) by 2030.
The announcement came after the first India–Canada Finance Ministers’ Economic and Financial Dialogue, held in Toronto, between Union Finance Minister Nirmala Sitharaman and Canadian Finance and National Revenue Minister François‑Philippe Champagne. In a joint statement, India’s Finance Ministry said New Delhi is ready to start BIT talks quickly, while both sides reaffirmed their commitment to deepen economic and financial cooperation.
What is a Bilateral Investment Treaty and why it matters
A Bilateral Investment Treaty is an agreement between two countries that sets clear rules to protect investors from each nation when they invest in the other. Such treaties usually cover:
- Fair and equitable treatment of investors
- Protection against arbitrary expropriation
- Free transfer of profits and capital
- A mechanism to resolve disputes between investors and the state
For India and Canada, a BIT is expected to boost investor confidence in sectors such as energy, infrastructure, technology, financial services and manufacturing. It is also seen as a complement to the ongoing negotiations on a Comprehensive Economic Partnership Agreement (CEPA), which aims to reduce tariffs and expand market access for goods and services.
From $8 billion to $70 billion: the new trade ambition
Bilateral trade between India and Canada stood at around $7.96 billion in FY26 (2025–26), according to recent government data. Both countries now want to more than double this to C$70 billion (roughly $50–52 billion) annually by 2030. Earlier discussions had referenced a $50 billion target; the latest joint statement frames it as CAD 70 billion, reflecting a stronger push.
The finance ministers said they will use regular economic and financial dialogue to track progress, remove bottlenecks and identify new areas of cooperation. They also stressed the role of long‑term institutional capital, such as pension funds and sovereign wealth funds, in financing large projects in both countries.
Fintech, GIFT City and easier cross‑border payments
Beyond traditional trade, the two sides are focusing on digital finance and financial market linkages. Sitharaman highlighted India’s Unified Payments Interface (UPI) as an area where Canadian banks, fintech firms and regulators could collaborate to make cross‑border payments faster, cheaper and more transparent for businesses and tourists.
She also pitched GIFT City (Gujarat International Finance Tec‑City) as a gateway for Canadian institutional investors. GIFT City offers a special regulatory and tax framework for international financial activity, and Canada’s pension funds and asset managers are already among the largest foreign investors in India’s infrastructure and private equity space.
Bigger picture: diversifying trade amid global uncertainty
The push to deepen India–Canada economic ties comes as Ottawa seeks to diversify its trade partners amid rising protectionism and tariff tensions with the United States. Canada has set a goal of doubling exports to non‑US markets over the next decade, and India, as the world’s fifth‑largest economy, is seen as a key long‑term partner.
For India, stronger ties with Canada can help secure technology, capital and critical minerals, while giving Indian companies better access to North American markets through Canadian partnerships.
What to watch next
Key developments to track in the coming months include:
- The start of formal BIT negotiations and the scope of protections offered
- Progress in CEPA talks, including tariff lines and services chapters
- Concrete steps on UPI–Canada payment integration and GIFT City products for Canadian investors
- Sector‑specific deals in clean energy, critical minerals, defence and aerospace
If the momentum from the Toronto dialogue is sustained, the India–Canada relationship could shift from a modest trade partnership to a strategic economic corridor with significant implications for both countries’ growth and geopolitical positioning.
 trade by 2030 after finance ministers’ dialogue in Toronto.){kind=link}