Free Trade Agreement Canada India

Free Trade Agreement Between Canada and India: What You Need to Know

In recent years, Canada and India have been working toward strengthening trade relations through a free trade agreement. This agreement could bring about significant benefits for both nations, including increased trade and investment opportunities, as well as improved access to each other`s markets. In this article, we`ll take a closer look at the free trade agreement between Canada and India, its potential benefits and challenges, and how it could impact businesses in both countries.


India is Canada`s second-largest trading partner in South Asia, and Canada is India`s 14th largest trading partner globally. In 2018, bilateral trade between the two countries reached $8.4 billion CAD. However, there are still plenty of opportunities for growth, particularly in sectors such as agriculture, information technology, and manufacturing.

The Canada-India free trade agreement negotiations began in 2010 but were put on hold in 2015. In 2018, both countries agreed to resume negotiations, and talks have been ongoing since then.

Potential Benefits

If a free trade agreement is reached between Canada and India, it could bring about significant benefits for both nations. For Canada, it could mean greater access to India`s rapidly growing economy and its 1.3 billion potential consumers. Canada is already a major exporter of goods such as agricultural products, forest products, and metals and minerals to India, and a free trade agreement could further enhance trade in these sectors.

For India, a free trade agreement with Canada could provide access to a highly developed economy with strong technology, innovation, and services sectors. It could also help Indian companies gain access to North American markets, as Canada has extensive trade relationships with the US.


Despite the potential benefits, there are also some challenges to be addressed in any free trade agreement between Canada and India. One of the main issues is tariffs. Currently, many Canadian exports to India face high tariffs, making it difficult for Canadian businesses to compete in the Indian market. Similarly, Indian exports to Canada face high tariffs, which could limit their market access.

Another challenge is regulatory barriers. India has a complex regulatory environment, particularly for foreign companies, and Canada will need to negotiate changes to some of these regulations to ensure fair treatment for Canadian businesses.

Impact on Businesses

A free trade agreement between Canada and India could have a significant impact on businesses in both countries. For Canadian businesses, it could mean improved market access and increased opportunities to sell goods and services in India. However, it may also lead to increased competition from Indian businesses in industries such as manufacturing and agriculture.

For Indian businesses, a free trade agreement could provide access to Canadian markets and open up new opportunities for investment and growth. However, Indian businesses will need to be prepared to meet Canadian regulatory requirements and compete with established Canadian businesses.


The Canada-India free trade agreement negotiations are ongoing, and it`s not yet clear what the final agreement will look like. However, there is no doubt that a free trade agreement between these two countries could bring about significant benefits for both nations. It could open up new opportunities for trade and investment, improve market access, and help businesses in both countries grow and thrive. As negotiations continue, it will be important for both Canadian and Indian businesses to pay close attention to the details and be prepared to adapt to any changes in the trade relationship.