India-US trade talks in advanced stage; New Delhi eyes FTA with Canada

India’s trade talks with the US are at an “advanced stage,” Commerce Minister Piyush Goyal said on Monday, December 22, adding that New Delhi is also looking to launch a Free Trade Agreement (FTA) with Canada.

The minister was speaking at a press conference after India and New Zealand announced the conclusion of an FTA. He emphasised that the slew of trade agreements signed this fiscal year reflects “India’s growing strategic importance” in global geopolitics.

India has now signed trade deals with

three of the five countries in the Five Eyes (FVEY) alliance—New Zealand, Australia and the UK.

Also Read: India, New Zealand conclude FTA talks; third trade pact this fiscal

India-Canada ties

Relations between India and Canada have seen a noticeable thaw in 2025 after years of diplomatic tension.

In October, Canada’s Foreign Minister Anita Anand visited India with a delegation after both countries appointed new high commissioners, signalling a reset in bilateral relations.

Economic and trade dialogues were revived, paving the way for discussions on potential frameworks for an FTA. Beyond commerce, both sides have also committed to cooperation in clean energy, critical minerals, science and technology, and people-to-people exchanges—reflecting a broader effort to strengthen strategic and practical ties.

More recently, in November, Goyal and Canada’s trade minister discussed lessons from global uncertainty and welcomed the steady expansion of two-way investment flows. This includes significant Canadian institutional investment in India and the growing presence of Indian firms in Canada, which together support tens of thousands of jobs in both economies, according to the Canadian government.