India expressed its readiness to begin negotiations on a Bilateral Investment Treaty (BIT) with Canada at the earliest, as Finance Minister Nirmala Sitharaman and her Canadian counterpart Francois-Philippe
Champagne concluded the inaugural Canada-India Finance Ministers’ Economic and Financial Dialogue.
According to an official joint statement released by the Ministry of Finance, the talks focused on strengthening economic and financial cooperation between the two countries, with enhanced trade and investment emerging as key areas of discussion.
The two ministers reaffirmed their shared ambition to increase bilateral trade to CAD 70 billion (around Rs 4.65 lakh crore) by 2030. The meeting follows a commitment made by Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney during their meeting in New Delhi in March 2026 to deepen bilateral economic and financial ties.
“India expressed its readiness to initiate negotiations on a Bilateral Investment Treaty at the earliest,” the joint statement said.
The ministers also discussed the ongoing negotiations for a Comprehensive Economic Partnership Agreement (CEPA), with both sides committed to concluding the talks by the end of 2026.
During the dialogue, Sitharaman and Champagne exchanged views on global macroeconomic developments and domestic policy priorities, while highlighting the mutual benefits of stronger investment ties.
The two sides welcomed growing investment flows between India and Canada and recognised the importance of long-term institutional capital. They noted the substantial presence of Canadian pension funds and other institutional investors in India and discussed measures to encourage greater engagement between financial institutions and investors from both countries.
The ministers also discussed the importance of domestic tax policies that provide stability and certainty to investors, as well as commercially viable investment opportunities across sectors of mutual interest.
Financial-sector cooperation featured prominently in the discussions. The two sides explored greater collaboration in payments modernisation, financial stability, fintech innovation, capital markets development and efforts to combat financial crime.
They agreed to encourage engagement between relevant authorities and stakeholders on cross-border remittances and merchant payments. The ministers also welcomed opportunities to expand the use of India’s Unified Payments Interface (UPI) in Canada through partnerships with payment service providers.
According to the statement, greater adoption of such payment systems could enable faster, more efficient and cost-effective transactions while supporting bilateral trade, tourism, education and the growth of small and medium-sized businesses.
Economic security and supply-chain resilience were also discussed, with the two countries agreeing to explore cooperation in strategic areas including critical minerals.
Following the dialogue, Sitharaman and Champagne participated in joint engagements with representatives from Canada’s financial services, fintech, technology, artificial intelligence, infrastructure, energy and natural resources sectors. The discussions focused on opportunities for long-term growth and deeper collaboration between businesses and financial institutions.
The ministers agreed to maintain regular economic and financial dialogue and work towards “concrete cooperation and tangible outcomes” in areas of mutual interest. The next Canada-India Economic and Financial Dialogue is scheduled to be held in 2027.
Sitharaman is currently on an official visit to Canada and the United States from August 25 to September 2. During her Canada visit, she is also holding investment and business roundtables and meetings with Canadian companies, with discussions covering sectors including energy, artificial intelligence and critical minerals.
India-Canada economic engagement has gathered momentum in recent months. According to the Ministry of Commerce and Industry, bilateral merchandise trade stood at around USD 8 billion in 2025-26, with India’s exports at USD 4.67 billion and imports at USD 3.28 billion.
The two countries are also negotiating a CEPA, with India and Canada having set a broader target of taking bilateral trade to USD 50 billion by 2030.
