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.