Canada sees significant scope to support India’s growing automobile, electric vehicle and battery industries by supplying critical minerals, Canadian International Trade Minister Maninder Sidhu said. The opportunity is part of broader discussions on diversifying supply chains as India and Canada accelerate negotiations for a trade agreement.
Speaking at the 2026 G20 Trade Ministers Meeting in Milwaukee, Sidhu said critical minerals could become an important area of cooperation between the two countries. He noted that India is looking to reduce dependence on concentrated supply chains as demand for electric vehicles and batteries continues to grow.
Critical Minerals Could Strengthen Economic Ties
Sidhu said Canada could contribute to India’s efforts to diversify its supply sources, particularly in sectors linked to automobiles, EVs and batteries.
“India is looking to diversify some of its supply chains,” he said, highlighting Canada’s ability to provide access to the minerals and resources needed for the electric vehicle ecosystem.
The minister also pointed to several other areas where India and Canada could work together, including energy, aerospace and critical minerals. He said Canada recently hosted an investment summit in Toronto that resulted in around USD 500 million in investment commitments.
According to Sidhu, these commitments could lead to new projects and deeper economic cooperation between the two countries.
India-Canada Trade Deal Talks Accelerate
The latest comments come as India and Canada move to speed up negotiations for a Comprehensive Economic Partnership Agreement (CEPA).
The fifth round of negotiations is scheduled to begin in Ottawa on Monday, after the fourth round was held in Mumbai last week. Both countries have set a target of increasing bilateral trade from around USD 30 billion to USD 70 billion over the next five years.
Sidhu said the negotiations are focused on developing complementary economic relationships, with supply chain diversification emerging as an important part of the discussions.
Canada has also highlighted opportunities for Indian companies to participate in mining and energy projects, which could further expand investment links between the two economies.
Trade Target Set at USD 70 Billion
Union Commerce Minister Piyush Goyal has also said that India and Canada have agreed to fast-track the negotiations. The coming 90 days are expected to be an important period for advancing bilateral economic ties, with both sides aiming to conclude the broader trade agreement by the end of 2026.
Commerce Ministry data shows that bilateral trade between India and Canada stood at around USD 8 billion in FY 2025-26. India exported goods worth USD 4.67 billion to Canada during the period, while imports from Canada stood at USD 3.28 billion.
Disclaimer
This article is based on statements and information available from the cited sources at the time of publication. Trade negotiations, investment commitments and bilateral economic policies may change as discussions progress. Readers should refer to official government announcements for the latest updates.