India and Canada are on track to more than double bilateral trade to $50 billion by 2030, Finance Minister Nirmala Sitharaman said in Toronto on Thursday. The minister will conclude her more than week-long visit to Canada and the US on Wednesday.
“Every country is now looking for predictability and trust. So you need countries to come together, be able to be sure that trade will continue smoothly. And we have identified market access in several areas,” Sitharaman said at a fireside chat with her Canadian counterpart, Francois-Philippe Champagne.
The two countries are also discussing a free trade agreement (FTA) with an aim to conclude it by the end of 2026 and increase bilateral trade, which stood at $7.96 billion in 2025-26 (FY26), to $50 billion by 2030. India and Canada set this ambitious target for bilateral trade last year during Prime Minister Narendra Modi’s visit.
Both economies see the proposed trade deal as a beacon of stability in an otherwise uncertain world. “The world of 2026 is increased complexity and volatility that I see. I would say trust is the most sought-after commodity in the world,” Canada’s Minister of Finance and National Revenue Champagne said. “And then when I think of India and Canada, we are complementary because the nexus today between food security, energy security, economic security, and national security, is almost one.”
Besides the trade deal, the two nations are also exploring a financial investment protection agreement. Discussions for the deal come as data shows foreign direct investment (FDI) into India from Canada has nearly doubled over the past four years. The North American nation was India’s 16th-largest source of FDI in FY26, with cumulative investment of $4.33 billion since April 2000, according to the latest data available with the Department for Promotion of Industry and Internal Trade (DPIIT). In fact, Canadian financial services company Fairfax is also said to have submitted a bid to acquire a 60 per cent stake in IDBI Bank, which is currently under the government’s strategic disinvestment process.
Meanwhile, Sitharaman, at the event, asked Canadian businesses to remain actively engaged with the Indian government. She said the government would try to take all possible measures to ease the business environment for them in India.
