Investment Commitment under CEPA with Canada
India is considering an investment commitment with Canada as part of the proposed Comprehensive Economic Partnership Agreement (CEPA), following patterns seen in its recent Free Trade Agreements (FTAs).
Key Investment Considerations
- Discussions include deciding a suitable investment target, which might range between $50 billion to $100 billion over the next 10-15 years.
- Recent trade agreements, such as with New Zealand and the European Free Trade Association (EFTA), had commitments of $20 billion and $100 billion, respectively.
Recent Diplomatic Engagements
The discussions on this economic partnership emphasize increasing trade ties, following Minister Piyush Goyal's visit to Canada, where he met with Prime Minister Mark Carney and Trade Minister Maninder Sidhu.
- The visit included interactions with major Canadian business leaders in sectors like financial services, AI, and clean energy.
- Launch of the India-Canada Trade and Investment Forum to bolster commercial ties.
Investor Interest and Economic Initiatives
During his visit, Goyal observed strong investor interest from Canadian businesses and emphasized the eagerness for a free trade agreement, reflected in the interactions with various financial entities and investors.
- Canada’s FDI into India has nearly doubled in the past four years, with Canada being the 16th-largest source of FDI in India in FY26.
- Cumulative Canadian investment in India amounts to $4.33 billion since 2000, according to DPIIT.
Future Objectives
Canada plans to deepen its economic engagement with India, with intentions to conclude the free trade agreement by November and boost bilateral trade from $7.96 billion in FY26 to $50 billion by 2030.
