Canadian Capital, Indian Scale Can Drive New Economic Partnership: Sitharaman

Finance Minister Nirmala Sitharaman has invited Canadian businesses and investors to deepen their engagement with India, highlighting the complementary strengths of both economies and calling for a stronger investment-led India-Canada economic partnership.

Addressing a high-level Business Roundtable in Toronto, Sitharaman said India’s reforms, digitalisation, infrastructure expansion and targeted policy support were creating a stronger environment for long-term investment. She described India as a platform for global manufacturing, innovation, services and exports, while urging Canadian companies to build operations that serve both Indian and international markets.

The outreach comes as India and Canada seek to advance negotiations on a Comprehensive Economic Partnership Agreement (CEPA), with economic engagement gaining importance after bilateral ties faced tensions in recent years. The broader negotiations are aimed at expanding market access, investment and trade between the two countries.

Sitharaman highlighted Canada’s strengths in capital, technology, critical minerals, natural resources and innovation, which can complement India’s large market, skilled workforce, manufacturing capacity, digital infrastructure and expanding consumer base. Bilateral trade in goods and services stood at around USD 24 billion in 2024, with both countries targeting USD 70 billion in annual two-way trade by 2030. The minister stressed that the opportunity extends beyond merchandise trade to investment, technology partnerships and supply-chain integration.

Potential investment areas include clean energy, critical minerals, rare earths, energy storage, sustainable infrastructure, agriculture, food processing, automotive, textiles, AI and biotechnology. Financial services also offer opportunities through GIFT International Financial Services Centre (GIFT IFSC).

Sitharaman separately met senior executives from CIBC and Payments Canada, encouraging greater participation by Canadian financial institutions in India. She highlighted UPI and Digital Public Infrastructure as foundations for scalable and inclusive financial services. The minister said deeper economic integration could support both countries’ growth ambitions while strengthening supply-chain resilience and contributing to India’s Viksit Bharat 2047 vision.