Union Finance Minister Nirmala Sitharaman has described India and Canada as the “most natural partners in the world”, underlining the depth of their relationship and calling for stronger economic, financial and institutional cooperation between the two countries.

Addressing a reception for the Indian diaspora business community in Toronto, Sitharaman said India-Canada relations had undergone a “remarkable transformation” in recent times, supported by shared democratic values, expanding economic engagement and stronger high-level interactions. She also highlighted the role of the Indian-origin business community in Canada as a bridge between the two economies. (Ommcom News)

Ties Beyond Trade

Sitharaman stressed that the relationship between India and Canada extends well beyond commerce. She pointed to their democratic systems, parliamentary traditions, multicultural societies and support for multilateralism as factors that provide a broader foundation for bilateral ties.

According to the Finance Minister, the two countries share a commitment to the rule of law and a rules-based international order. She said the diversity of both societies creates a bond that goes deeper than any individual trade agreement. (Ommcom News)

Her remarks come as New Delhi and Ottawa work to rebuild and expand bilateral engagement following years of diplomatic tensions. The relationship has recently entered a new phase, with both sides focusing more closely on trade, investment and broader economic cooperation.

Focus on Trade and Investment

Sitharaman recalled the meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G7 Summit in June 2025, saying the two leaders had agreed to work towards a future-focused strategic partnership.

She also referred to Carney's visit to India earlier this year, during which the two sides advanced discussions on a Comprehensive Economic Partnership Agreement (CEPA), announced a long-term uranium supply agreement involving Cameco and set an ambition to more than double bilateral trade to Canadian $70 billion by 2030. (Ommcom News)

The two countries have also been working to deepen investment and financial linkages. India's bilateral trade in goods with Canada was valued at CAD 13.55 billion in 2025, according to the High Commission of India in Ottawa. (hciottawa.gov.in)

India’s Growth Story

Pitching India as an investment destination, Sitharaman highlighted the country's large consumer market, young population, expanding middle class, rapid urbanisation and digital infrastructure.

She said India's economic transformation was structural and that its digital ecosystem had expanded access to financial and commercial services while reducing transaction costs.

The Finance Minister also pointed to India's growing capital markets and the opportunities available to Canadian institutional investors as the two economies seek deeper financial integration.

UPI, GIFT City in Focus

Sitharaman identified digital financial infrastructure as another potential area of cooperation. She highlighted Unified Payments Interface (UPI) and said there was scope for collaboration between Indian and Canadian banks, fintech companies and regulators in areas including payments and next-generation financial infrastructure.

She also promoted GIFT City, India's International Financial Services Centre, as an emerging platform for international financial institutions and cross-border financial activity. (Ommcom News)

She said India had progressively opened sectors including insurance, asset management and pensions to greater foreign participation, creating additional opportunities for international investors.

Sitharaman’s Canada-US Visit

Sitharaman's comments came during her official visit to Canada and the United States from August 25 to September 2. The visit is focused on strengthening economic and financial partnerships, engaging investors and corporate leaders, and promoting investment opportunities in India. (The Economic Times)

The Finance Minister's outreach in Canada is therefore significant as New Delhi and Ottawa seek to translate the recent diplomatic reset into greater trade, investment and financial cooperation.

 India and Canada are working towards concluding negotiations on the proposed Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026, the Ministry of External Affairs (MEA) informed Parliament on Friday, signalling continued progress in bilateral trade relations after diplomatic ties resumed last year.

In a written reply in the Rajya Sabha, Minister of State for External Affairs Kirti Vardhan Singh said both countries have completed three rounds of negotiations, with the latest round held in Ottawa from July 6 to July 10, 2026.

The minister said discussions have advanced across multiple negotiating areas and both governments are working towards completing the agreement by late 2026.

Trade Pact to Boost Economic Cooperation

According to the MEA, the proposed CEPA is aimed at establishing a comprehensive free trade framework between India and Canada by reducing or eliminating tariffs and other trade barriers.

The agreement also seeks to facilitate greater trade in goods and services, improve investment flows, strengthen supply chains, enhance transparency in trade regulations, and deepen overall economic cooperation.

Officials believe the pact could significantly expand bilateral trade while creating new opportunities for businesses, exporters and investors in both countries.

Negotiations Gain Momentum

The government said negotiations have resumed at a steady pace following the restoration of diplomatic engagement between the two nations.

The three completed negotiation rounds have covered several chapters of the proposed agreement, including market access, trade facilitation, investment, services and regulatory cooperation.

Officials from both sides are expected to continue discussions over the coming months to resolve outstanding issues before the targeted conclusion next year.

Relations Improve After Diplomatic Reset

The MEA highlighted that India-Canada relations have witnessed positive momentum since the normalisation process began in June 2025.

A key milestone came during the G7 Leaders' Summit in Evian, France, where Prime Minister Narendra Modi met Canadian Prime Minister Mark Carney on June 16, 2026.

During the meeting, both leaders reviewed progress made in restoring bilateral engagement and expressed satisfaction over the improving relationship between the two countries.

Diplomatic Engagement Restored

The government said several confidence-building measures have already been implemented following the diplomatic reset.

These include:

• Restoration of High Commissioners in New Delhi and Ottawa.

• Gradual rebuilding of diplomatic staff at both missions.

• Resumption of bilateral dialogue mechanisms across multiple sectors.

• Revival of high-level political and official exchanges.

The MEA stated that these developments have created a conducive environment for advancing negotiations on the trade agreement.

Strategic Importance of CEPA

A comprehensive trade agreement is expected to strengthen commercial ties between two major economies that already share growing cooperation in education, technology, agriculture, clean energy and innovation.

Canada remains an important destination for Indian exports and investments, while India represents one of Canada's fastest-growing trade and investment partners in the Indo-Pacific region.

Industry experts believe a successful CEPA could improve market access for businesses, reduce trade costs and encourage greater cross-border investment while enhancing long-term economic cooperation.

With negotiations progressing and diplomatic relations stabilising, both countries are aiming to conclude the agreement before the end of 2026, potentially opening a new chapter in India-Canada economic relations.

India and Canada have completed the third round of negotiations for the proposed Comprehensive Economic Partnership Agreement (CEPA), signalling renewed momentum in efforts to conclude a long-pending trade pact by the end of 2026. The five-day discussions, held in Ottawa from July 6 to July 10, focused on expanding bilateral economic cooperation and advancing an ambitious target of doubling two-way trade to $50 billion by 2030.

The latest round marks a significant step in rebuilding economic ties after two previous attempts to negotiate the agreement failed over the past decade, with the most recent collapse triggered by diplomatic tensions in 2023.

Third Attempt at a Trade Pact

India and Canada first launched CEPA negotiations in 2010, but years of discussions failed to produce an agreement. Talks were revived in 2022 before stalling again following a deterioration in diplomatic relations linked to allegations surrounding the killing of Khalistani separatist Hardeep Singh Nijjar in Canada.

Relations began improving after Mark Carney assumed office as Canada's Prime Minister in 2025. The renewed political engagement culminated in both governments formally restarting CEPA negotiations in March 2026 after finalising the Terms of Reference for the proposed agreement.

Commerce and Industry Minister Piyush Goyal and Canada's International Trade Minister Maninder Sidhu exchanged the negotiation framework in the presence of Prime Minister Narendra Modi and Prime Minister Mark Carney, setting the roadmap for future discussions.

Wide Range of Issues on the Table

Officials said the latest negotiations covered several core chapters of the proposed agreement, including trade in goods and services, intellectual property rights, rules of origin, sanitary and phytosanitary standards, and technical barriers to trade.

Both sides reiterated their commitment to concluding a balanced and mutually beneficial agreement that would deepen market access and strengthen long-term commercial cooperation.

Trade Target Remains Ambitious

India and Canada have set a goal of raising bilateral trade to $50 billion by 2030, more than doubling the current level.

Overall bilateral trade, including goods and services, stood at approximately $23.66 billion in 2024. However, merchandise trade remains relatively modest. During 2025-26, two-way goods trade declined by 8.22% to $7.95 billion from $8.66 billion in the previous financial year.

India's exports to Canada increased to $4.67 billion, while imports from Canada declined to $3.28 billion, reflecting an improvement in India's trade balance.

Analysts note that achieving the $50 billion target will require deeper market integration, diversified supply chains and expanded investment flows rather than tariff reductions alone.

Mutual Economic Opportunities

For India, Canada offers a high-income consumer market with strong demand for pharmaceuticals, engineering goods, electronics, chemicals, textiles, seafood and gems and jewellery. Indian IT and business services companies are also expected to benefit from improved market access under the proposed agreement.

Canada, meanwhile, is seeking greater opportunities in India's fast-growing economy, particularly in agriculture, energy, minerals, fertilisers, natural resources and investment.

The investment relationship is already substantial, with Canadian foreign direct investment in India exceeding $4 billion, while Canadian portfolio investments in Indian financial markets have crossed $75 billion.

The presence of more than 425,000 Indian students and a large Indian-origin community in Canada is also viewed as an important foundation for expanding economic ties.

Economics Meets Geopolitics

The renewed CEPA negotiations come as both countries seek to diversify their global trade partnerships. India has accelerated negotiations and concluded several trade agreements in recent years, while Canada is looking to reduce its dependence on the United States by strengthening commercial engagement with fast-growing markets.

Despite the positive momentum, negotiators still face complex discussions on agriculture, investment protection, intellectual property rights and regulatory standards.

Observers believe the success of the agreement will ultimately depend on whether both governments can sustain political goodwill and translate diplomatic progress into tangible commercial outcomes.

If concluded as planned, CEPA could become a cornerstone of a broader India-Canada economic partnership and significantly reshape bilateral trade over the coming decade.

Govt restricts silver imports, makes licence mandatory for key categories

Silver import rules tightened to curb non-essential imports; primary keyword “silver imports” used here

New Delhi, late morning — The central government on Saturday tightened rules around silver imports, moving key categories from a freely importable list to the “restricted” category and making an import licence mandatory, according to an official notification seen by this newspaper.

What changed
The notification says 99.9% pure silver bars, unwrought (raw) silver, silver powder and silver coated with gold or platinum will now require prior government approval for import. Customs will not clear consignments in these categories without the requisite licence, officials said.

Why the step was taken
Officials described the move as aimed at reducing non-essential imports and checking the outflow of foreign exchange. “Rising imports of precious metals have been widening the trade deficit and putting pressure on the rupee,” a government source familiar with the matter said on condition of anonymity. The change follows an earlier increase in import duty: on May 13 the government raised import duty on gold and silver from 6% to 15%.

Timing and context
The DGFT notification comes amid a sharp year‑to‑date rise in bullion prices and record gold imports in 2025–26. India’s gold import bill climbed over 24% to about $72 billion last fiscal year, putting added focus on curbing precious‑metal imports. Silver prices have also jumped — from roughly ₹2.30 lakh per kg on 31 December 2025 to about ₹2.69 lakh per kg this month, industry data show.

Trade and routing concerns
Think tanks and officials cited concerns that low‑duty silver could be routed through third countries, notably the UAE, under trade pacts such as the India‑UAE CEPA. “There was a risk of a surge in cheap silver imports routed via Dubai to exploit preferential tariffs,” said Ajay Srivastava, founder of the Global Trade Research Institute (GTRI). The restricted status is intended to plug such channels, the government said.

Rules for importers
Under the new process importers must obtain a licence from the commerce ministry or designated authority before consignments are cleared by customs. Some categories may also be placed under Reserve Bank of India monitoring, which would add compliance for banks and traders dealing in overseas payments for bullion.

Changes to Advance Authorisation
Separately, DGFT has tightened the Advance Authorisation scheme that allows duty‑free imports for exporters. Exporters will be allowed to import a maximum of 100 kg of gold per licence, and first‑time applicants must undergo physical verification of their manufacturing units before licences are issued. Repeat authorisations will be contingent on meeting at least 50% of past export obligations, the notification said. Firms must now file transaction reports every 15 days, certified by a chartered accountant, with regional DGFT officers compiling monthly reports for headquarters.

Industry reaction
Jewellery and manufacturing bodies expressed concern about the suddenness of the move. The All India Gems and Jewellery Council warned higher duties and licensing could push trade into the grey market and spur smuggling, hurting legitimate businesses and small jewellers. “Sudden restrictions create near‑term disruption for manufacturers that rely on imported raw silver,” said an industry executive requesting anonymity.

Ground reality and public impact
On the ground in Delhi and Mumbai, dealers reported an uptick in enquiries about import licences and compliance timelines. Small and medium jewellers — many of whom operate on thin margins — said they would face working capital stress if supplies tighten. Consumers are already seeing higher retail prices after bullion runs earlier this year.

What’s next
Officials said implementation details, including licence application procedures and timelines, will be clarified in follow‑up orders. Traders and industry associations expect further consultations with the commerce ministry and customs in the coming days. Markets will be watching how the new rules affect domestic liquidity of silver and the wider jewellery supply chain.

Focus on enforcement and monitoring is likely to increase, officials added, as New Delhi balances trade deficit concerns with the needs of industry.