PM Narendra Modi and Canadian PM Mark Carney
Canada and India have agreed to restart stalled talks for a new trade deal, the Indian government said on Sunday. Talks between the two countries had come to a halt following a diplomatic dispute two years ago. Prime Minister Mark Carney held bilateral discussions with Indian Prime Minister Narendra Modi on the sidelines of the G20 summit in Johannesburg, South Africa.
A statement issued by India’s Prime Minister’s Office said the leaders agreed to begin negotiations on a highly-ambitious Comprehensive Economic Partnership Agreement (CEPA), which aims to double bilateral trade to US$50 billion by 2030.
On the other hand, Carney said in a post on He further said that India is the 5th largest economy in the world, and this means that huge new opportunities will be created for Canadian labor and business.
Prime Minister @narendramodi and I met at the G20 Summit today, and launched negotiations for a trade deal that could more than double our trade to $70 billion.
India is the world’s fifth largest economy, and that means big new opportunities for Canadian workers and businesses. pic.twitter.com/xjbBIRqcs9
—Mark Carney (@MarkJCarney) November 23, 2025
Relations are improving again
Both sides reaffirmed their long-term civil nuclear cooperation and noted ongoing discussions to expand cooperation, including a long-term uranium supply arrangement. The resumption of talks is an indication that relations between the two countries are once again becoming cordial. On the other hand, Carney is emphasizing on expanding trade relations with its biggest trading partner America. Carney has pledged to double Canada’s non-US exports over the next decade.
PM @narendramodi had a very productive meeting with PM @MarkJCarney of Canada. The two leaders welcomed the strong momentum in bilateral ties and agreed to advance cooperation in trade, investment, technology, innovation, energy, education, defense and space. pic.twitter.com/DVS3WNeBA6
— PMO India (@PMOIndia) November 23, 2025
Disputes and business between the two countries
Canada halted talks on a comprehensive trade deal in 2023 after relations soured after Ottawa accused the Indian government of involvement in the killing of a Canadian Sikh separatist. Despite the diplomatic dispute, trade between Canada and India has grown, but trade experts say it remains small compared to the size of India’s economy. Bilateral goods and services trade is projected to reach approximately 31 billion Canadian dollars (21.98 billion US dollars) in 2024, which is in Canada’s favor as it has service exports worth 16 billion Canadian dollars. In contrast, Canada’s total bilateral trade with China was almost four times larger in 2024.
India trusted partner
Relations between Canada and India began to improve after Modi met Carney during the G-7 summit in June. Earlier on Sunday, Carney said he considered India a reliable trading partner, although he acknowledged that there could be some “sources of friction”. He said that Canada and India have strong business relations and he is keen to develop them further. Carney also met with Brazilian President Luiz Inacio Lula da Silva at the G20 summit and the two leaders agreed to accelerate negotiations on the Canada-Mercosur free trade agreement. Mercosur includes Brazil, Argentina, Paraguay and Uruguay.