New Delhi: In a significant step towards revitalizing bilateral economic ties, India and Canada held high-level trade discussions on Thursday, focusing on boosting investment, trade, and cooperation across multiple sectors. The talks were conducted under the 7th India-Canada Ministerial Dialogue on Trade and Investment (MDTI), co-chaired by Union Commerce Minister Piyush Goyal and Canada’s Minister of Export Promotion, International Trade, and Economic Development Maninder Sidhu in New Delhi.

The dialogue marked what officials described as “a renewed phase of engagement aimed at reinvigorating bilateral trade and investment ties and setting a forward-looking agenda for cooperation.” A joint statement issued earlier, titled “Renewing Momentum towards a Stronger Partnership” on October 13, 2025, emphasized trade as the cornerstone of economic growth and resilience between the two nations. The statement followed a meeting in New Delhi between Canada’s Foreign Minister Anita Anand and India’s External Affairs Minister S. Jaishankar.

Strengthening the India-Canada Economic Relationship

During the dialogue, both ministers reaffirmed the enduring strength of the India-Canada relationship, highlighting shared democratic values, cultural diversity, and growing economic complementarities. The importance of the Indian diaspora in Canada—comprising nearly 2.9 million people—and over 427,000 Indian students in the country was also emphasized. Both ministers noted that these communities play a vital role in fostering cross-cultural understanding, innovation, and economic collaboration, acting as bridges between the two societies.

Bilateral trade in goods and services between India and Canada reached $18.38 billion in 2023. Both ministers welcomed the steady increase in two-way investments and reaffirmed their commitment to fostering an open, transparent, and predictable business environment that supports sustainable and inclusive growth.

Agenda of the Dialogue

The ministerial dialogue addressed a wide-ranging agenda encompassing key areas of economic cooperation. Discussions included strengthening bilateral economic ties and advancing sectoral collaboration in priority domains such as:

• Nutritional security: Measures to ensure the availability and affordability of essential food products.
• Supply chain resilience: Strategies to safeguard trade and investment flows against disruptions.
• Health sector cooperation: Collaborative initiatives in pharmaceuticals, medical research, and healthcare infrastructure.
• Investment facilitation: Promoting regulatory alignment, reducing barriers, and enhancing market access.

The ministers reviewed recent trade policy developments and explored avenues to enhance long-term economic resilience. Both sides committed to translating discussions into tangible outcomes that advance shared prosperity and reflect the depth and dynamism of India-Canada relations.

Normalization of Bilateral Ties

Sidhu’s visit signifies the normalization of ties after a period of diplomatic strain. Relations between India and Canada had deteriorated in September 2023, when former Canadian Prime Minister Justin Trudeau alleged Indian government involvement in the killing of Khalistani separatist Hardeep Singh Nijjar in Surrey. India dismissed the claims as “absurd,” resulting in a freeze on trade negotiations, a downgrade in diplomatic relations, and the expulsion of diplomats from both countries.

Since then, efforts have been made to restore stability. Earlier this year, Prime Minister Narendra Modi met Mark Carney on the sidelines of the G7 Summit in Canada—the first high-level contact in more than 20 months. Both sides agreed on “calibrated and constructive” measures to resume engagement, including posting high commissioners to each other’s capitals. Dinesh Patnaik and Christopher Cooter were appointed as India’s and Canada’s high commissioners, respectively.

The renewed engagement has included multiple meetings between Indian Foreign Minister S. Jaishankar and Canada’s Anita Anand, reflecting a concerted effort to stabilize and strengthen bilateral cooperation. In addition, India’s Finance Minister Nirmala Sitharaman is expected to visit Canada later this month, further signaling a commitment to deepening economic ties.

Moving Forward

The discussions on Thursday underscored both countries’ commitment to a forward-looking economic partnership grounded in mutual respect, trust, and collaboration. By focusing on trade facilitation, investment promotion, and sectoral cooperation, India and Canada aim to build a more resilient and diversified economic relationship.

Officials noted that translating the dialogue into actionable outcomes will require sustained engagement, regulatory alignment, and support for businesses and investors. Both sides stressed the importance of creating an environment that encourages sustainable growth, technological exchange, and innovation-driven partnerships, benefiting both nations’ economies and societies.

The 7th MDTI reflects a broader commitment by India and Canada to strengthen bilateral trade and investment after a period of tension. By reaffirming shared democratic values and emphasizing the role of diaspora communities, the dialogue has laid the foundation for enhanced collaboration in trade, investment, and innovation across multiple sectors.

As India and Canada look to the future, the emphasis remains on building a resilient partnership that leverages economic complementarities, promotes sustainable development, and fosters mutual prosperity in line with the long-standing historical and cultural ties between the two countries.

The dialogue concluded with both ministers reiterating their commitment to translating discussions into concrete results, ensuring that the India-Canada economic partnership continues to grow in strength and scope, contributing to regional and global economic stability.