Canada and India are targeting the completion of a long-delayed comprehensive economic partnership agreement by the end of 2026, as Fairfax Financial’s proposed takeover of IDBI Bank highlights renewed investor interest.
India and Canada are edging closer to a long-delayed trade pact, with both sides now aiming to wrap up negotiations for a comprehensive economic partnership agreement by the end of 2026. Canadian International Trade Minister Maninder Sidhu said in Bengaluru that the next round of talks is due in the week of 9 November, as Ottawa concluded its largest trade mission to India in three decades. Canada’s foreign affairs department said in September that Sidhu and Commerce and Industry Minister Piyush Goyal had reaffirmed their commitment to finish the talks this year, underscoring how the deal has become a priority for both governments.
The agreement, known as CEPA, is intended to lower barriers to trade in goods and services, improve market access and create a more predictable framework for business. Canadian officials say the wider ambition is to raise bilateral trade to C$70 billion by 2030, while also covering investment, digital trade and mobility. Canada launched the negotiations in November 2025 and says the talks are designed to support sustainable prosperity while preserving its ability to regulate in the public interest.
Sidhu used Fairfax Financial Holdings’ recent move to take control of IDBI Bank as evidence that Canadian capital remains interested in India despite the diplomatic and trade complexity that has surrounded the relationship in recent years. Fairfax said on 14 October that one of its wholly owned subsidiaries had been chosen as the strategic buyer for a 60.72% stake in IDBI Bank in India’s disinvestment process. The company said the transaction values the stake at about INR 528.78 billion, or roughly $5.6 billion, and that it plans to contribute holdings in Digit Insurance and IIFL Capital to the bank after the acquisition.
The minister said the deal showed investors were still willing to commit significant capital to India and could help draw more business through the supply chain. He also pointed to Fairfax’s earlier investments in the country, including Bengaluru International Airport. According to the Canadian government, pension funds and large institutions from Canada have already channelled close to C$107 billion into India across roads, healthcare, technology, clean energy and other sectors.
Trade officials on both sides are looking beyond finance and infrastructure. According to the Canadian government, the latest discussions have included life sciences, clean technology and aerospace, while Sidhu in Bengaluru highlighted opportunities in critical minerals, fertilisers, artificial intelligence, quantum computing and data centres. India has become an especially important market for Canadian fertiliser exporters, Sidhu said, while aerospace shipments have also climbed sharply. For businesses on both sides, the CEPA is being sold not just as a tariff-cutting exercise but as a way to turn a broad commercial relationship into something more durable.
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