Carney Says Canada Is Negotiating Free Trade Deal With India

Canadian Prime Minister Mark Carney says Canada is negotiating a free trade agreement with India, framing the talks as a potential turning point for Canadian workers and businesses.

“We’re negotiating a free trade deal with India. This will be a game changer for Canadian workers and businesses — unlocking a massive new market,” Carney said in a social media post after meeting India’s Commerce and Industry Minister Piyush Goyal.

The statement is more than routine trade language. It comes as Canada is trying to diversify away from heavy dependence on the U.S. market, while India is looking for reliable partners in energy, food, critical minerals, technology and education.

What happened

Carney said Canada and India are moving quickly on a trade agreement after talks with Goyal, who visited Canada with a large Indian business delegation. According to AP, more than 100 senior business representatives from India’s mining, energy, automotive and aerospace sectors accompanied the minister.

Goyal described the relationship as being reset “very, very rapidly,” saying Carney’s recent visit to India had changed the way the two countries looked at each other. That visit was the first bilateral trip to India by a Canadian prime minister since 2018.

Why the deal matters

The deal being discussed is a Comprehensive Economic Partnership Agreement, or CEPA — a broader trade pact that can cover tariffs, investment, services, supply chains and sector-specific cooperation. Canada and India have said they want to conclude the agreement this year.

Ottawa’s own statement says the CEPA is meant to help more than double two-way trade to $70 billion by 2030. CBC reported that Carney and Indian Prime Minister Narendra Modi announced a “new partnership” built around trade, energy, technology and talent after their meeting in New Delhi.

For Canada, the logic is clear: India is a fast-growing market with 1.4 billion people and rising demand for energy, food, minerals and technology. For India, Canada offers resources, capital, universities, energy supply and access to advanced industries.

The political backdrop

The trade push also marks a diplomatic turn. Canada-India relations deteriorated sharply after the 2023 killing of Sikh activist Hardeep Singh Nijjar in British Columbia and Canadian allegations of Indian involvement. India denied the allegation, and relations remained tense under former prime minister Justin Trudeau.

Carney is now trying to move the relationship into a more practical phase without pretending the political issues disappeared. CBC reported that Carney raised transnational repression with Modi, even as both leaders pushed the economic reset publicly.

What is confirmed — and what is not

Confirmed: Carney said Canada is negotiating a free trade deal with India and called it a major opportunity for Canadian workers and businesses. AP, CBC and the Canadian Prime Minister’s Office all report renewed momentum around a Canada-India economic partnership.

Not confirmed yet: the final terms, sector-by-sector concessions, tariff changes, dispute mechanisms, or whether the agreement will actually be signed by the end of the year. The political will is visible; the legal text is still the hard part.

The clean read: Carney is positioning India as a major diversification play for Canada. The deal is not finished, but the public language from both governments shows the reset is now moving through trade, energy and business channels.

What to watch next

The next signal is whether negotiators publish a concrete timeline or framework text. After that, watch agriculture, energy, education, critical minerals and technology — the sectors both sides keep naming because they are where the political promise has to turn into actual commercial access.