India-Canada trade reached $8.4 billion in FY24, up from $8.3 billion in FY23, with total goods and services trade rising from $18.38 billion in 2023 to nearly $23 billion in 2024. Services trade is a growing pillar, with Canada importing Indian IT and back-office services accounting for 3.5% of its total services imports. Both nations are advancing toward a Comprehensive Economic Partnership Agreement (CEPA) after relaunching negotiations in March 2022. Canada sees India as a strategic partner under its Indo-Pacific strategy, aiming to double bilateral trade by 2030. India relies on Canada for pulses, fertilizers, newsprint, wood pulp, and industrial chemicals, while exporting gems, pharmaceuticals, and engineering goods. The partnership is seen as critical for enhancing North American supply chain resilience in critical minerals, clean energy, and digital services.
India-Canada Bilateral Trade Reaches $8.4 Billion in FY24
According to Sarkaritel.com, India-Canada merchandise trade totaled approximately $8.4 billion in FY24, a marginal increase from $8.3 billion in FY23. On a broader basis, trade in goods and services rose from $18.38 billion in 2023 to nearly $23 billion in 2024, reflecting accelerating service sector engagement.
Services Trade Grows Significantly, Driven by Indian IT and Back-Office Services
Services trade has emerged as the strongest pillar of bilateral engagement. Canada’s services exports to India account for about 1% of its total services exports, while Indian services imports into Canada have risen to an estimated 3.5%. This reflects growing Canadian reliance on Indian IT, professional, and back-office services.
Strategic Interdependence in Critical Minerals and Energy
Canada’s resource sector sees India as a long-term market for liquefied natural gas (LNG), crude oil, and critical minerals, especially as India expands its renewable energy and electrification infrastructure. India imports essential industrial inputs from Canada, including pulses, fertilizers, newsprint, wood pulp, and industrial chemicals, highlighting dependencies that support food security and manufacturing.
Trade Agreement Pathway: EPTA to CEPA
India and Canada are pursuing a phased trade architecture, beginning with the Early Progress Trade Agreement (EPTA) and advancing toward a Comprehensive Economic Partnership Agreement (CEPA). Negotiations were formally relaunched in March 2022, covering goods, services, investment, rules of origin, sanitary standards, and dispute resolution mechanisms.
Geopolitical Motivations for Closer Ties
For Canada, closer trade ties with India serve strategic goals: reducing overdependence on the United States and balancing economic relations with China. Canada has identified India as a key partner under its Indo-Pacific strategy, with a target to double bilateral trade by 2030.
Indian Industry’s Role in Global Supply Chains
India exports gems and jewellery, pharmaceuticals, garments, organic chemicals, and engineering goods, reinforcing its position as a diversified manufacturing and processing hub. These exports support global supply chain stability, particularly in sectors vulnerable to geopolitical disruption.
“A potential India-Canada trade agreement could play a strategically significant role in Canada’s diversification agenda and North American supply chain resilience, particularly in critical minerals, clean energy and knowledge-driven services.” — One World Outlook
Industry and Supply Chain Implications
Supply chain professionals may see increased opportunities in cross-border digital services and critical mineral logistics. The proposed EPTA and CEPA frameworks could streamline customs procedures and reduce compliance costs for exporters in both countries. As India’s energy demand grows and industrial output expands, Canadian resource exports to India are expected to rise, supporting long-term supply chain diversification.
Source: www.sarkaritel.com
Compiled from international media by the SCI.AI editorial team.
