In 2023, Canada had paused negotiations for a free trade agreement with India.

The India-Canada relations hit rock bottom following then Prime Minister Justin Trudeau's allegations in 2023 of a potential Indian link to the killing of Hardeep Singh Nijjar.

India had dismissed Trudeau's accusation as "absurd".

In March 2022, the two countries had re-launched negotiations for an interim agreement, officially dubbed as Early Progress Trade Agreement (EPTA).

Over half a dozen rounds of talks have been held on the trade pact so far.

Normally in a trade agreement, two countries significantly reduce or eliminate customs duties on the maximum number of goods traded between them.

They also liberalise norms for promoting trade in services and attract investments.

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, dipped 2.33 per cent to USD 4.44 billion in the last fiscal year from USD 4.55 billion in 2023-24.

The renewed vibrancy in ties between the two countries followed Prime Minister Narendra Modi's talks with his Canadian counterpart Mark Carney on the sidelines of the G7 summit at Canada's Kananaskis in June.

Bilateral trade in goods and services between India and Canada 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.