India, Canada eye Bilateral Investment Treaty to unlock ₹4.65 lakh crore trade by 2030 

India has offered to begin negotiations on a Bilateral Investment Treaty with Canada at the earliest, as both nations move to solidify economic cooperation and propel bilateral trade to ₹4.65 lakh crore (CAD 70 billion) by 2030.

The announcement followed the inaugural Canada-India Finance Ministers' Economic and Financial Dialogue, where Union Finance Minister Nirmala Sitharaman met Canada’s Minister of Finance and National Revenue François-Philippe Champagne.

The strategic exchange builds on commitments established in New Delhi in March 2026 by Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi.

"India expressed its readiness to initiate negotiations on a Bilateral Investment Treaty at the earliest," confirmed the joint statement issued by both finance ministries.

Beyond the investment framework designed to provide legal protections and long-term stability for cross-border capital, the ministers reaffirmed their target to finalise negotiations for a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026.

The economic framework is bolstered by a parallel target under CEPA to expand merchandise trade to $50 billion by 2030, building on the $8 billion recorded in 2025-26, comprising $4.67 billion in Indian exports and $3.28 billion in imports.

A major focus of the discussions involved leveraging long-term institutional capital. Both sides highlighted the substantial footprint of Canadian pension funds in India and discussed how existing tax relief provided by New Delhi has stimulated investment. The ministers stressed the importance of domestic tax legislation that ensures "stability and certainty to taxpayers in respect of their investments," while opening avenues for further institutional capital deployment.

Financial technology and infrastructure modernization featured prominently across the agenda. The two governments agreed to facilitate cooperation between relevant regulatory authorities to streamline cross-border remittances and merchant transactions.

A key element under exploration involves integrating India's Unified Payments Interface (UPI) with Canadian payment service providers to enable "faster, more efficient and cost-effective payments," benefiting trade, tourism, international students, and small and medium-sized enterprises.

To strengthen economic security against global supply chain vulnerabilities, the dialogue focused on strategic collaboration, specifically targeting critical minerals essential for clean energy transitions, artificial intelligence, and advanced technology.

Following the ministerial dialogue, Sitharaman and Champagne co-hosted roundtables with top industry executives from Canada’s financial services, FinTech, artificial intelligence, infrastructure, energy, and natural resources sectors.

The engagement formed part of Sitharaman’s official mission across Canada and the United States running through September 2. The next iteration of the Dialogue is scheduled for 2027.