New Delhi, February 24 India and Canada are expected to soon finalize the terms of reference to begin negotiations for a free trade agreement (FTA) later this week, Commerce and Industry Minister Piyush Goyal said on Tuesday.
Canadian Prime Minister Mark Carney will arrive in India on February 26.
During this visit, Goyal said, "we are hoping to finalize the terms of reference and launch FTA negotiations with Canada later this week".
The terms of reference (ToR) outline the scope and modalities of a proposed trade pact.
The two countries were earlier negotiating a trade pact, but it was paused by Canada in 2023. Now they have decided to resume talks from the beginning, as a lot has changed on the global trade front during these two years.
India's exports to Canada rose 9.8 per cent to USD 4.22 billion in 2024-25 from USD 3.84 billion in 2023-24.
Imports, however, declined 2.33 per cent to USD 4.44 billion in the last fiscal year from USD 4.55 billion in 2023-24.
Bilateral trade in goods and services stood at USD 18.38 billion in 2023.
There are about 2.9 million Indian diaspora and over 4,27,000 Indian students in Canada.
Goyal also said that the recently announced FTA with the European Union may be implemented in the first quarter of next year.
He suggested exporters to take full advantage of these pacts and emphasised the need to increase awareness about these FTAs in small cities and towns of India.