India Ready to Talk Trade Treaty With Canada

India has signalled its readiness to begin treaty negotiations with Canada, aiming to strengthen bilateral trade that could reach Rs 4.65 lakh crore.

The announcement came as senior Indian officials, including Finance Minister Nirmala Sitharaman and Commerce Minister Piyush Goyal, conducted overseas engagements to court foreign investors.

During these visits, the ministers highlighted India's economic growth trajectory and recent structural reforms designed to make the country more attractive to global capital.

Sitharaman specifically appealed to Canadian pension funds, inviting them to participate in India's ongoing asset monetisation programme.

Pension funds, which manage vast pools of long-term savings, are often seen as ideal partners for infrastructure projects due to their preference for stable, long-duration returns.

India's asset monetisation drive involves leasing or transferring the operational rights of public assets, such as roads, railways and power infrastructure, to private or institutional investors in exchange for upfront capital.

This approach allows the government to generate revenue without increasing public debt while retaining ownership of the underlying assets.

By encouraging Canadian pension funds to invest, India hopes to secure steady, large-scale capital inflows that can support its infrastructure expansion.

A formal trade treaty between India and Canada could further deepen economic ties, potentially easing tariffs and opening new sectors for cross-border investment.

Such an agreement would build on existing trade relations and could pave the way for expanded cooperation in areas like energy, technology and manufacturing.

The push for foreign investment reflects a broader Indian strategy to position itself as a leading destination for global capital amid shifting international trade dynamics.

While specific timelines for treaty negotiations were not disclosed, the overtures suggest growing momentum toward closer economic collaboration between the two nations.

Analysts note that successful treaty talks could significantly boost trade volumes and investor confidence, though details of the negotiation process remain to be finalised.