Canada Targets Doubling India Trade to $60 Billion

Canada has set an ambitious goal to double its bilateral trade with India from $30 billion to $60 billion by the end of the decade, signalling a renewed strategic push in economic engagement. The target comes as Ottawa prepares for a high-level visit to New Delhi and reflects a broader recalibration of ties amid global economic uncertainty and shifting supply chains.

Trade expansion as a strategic priority

Speaking at India Energy Week, Canada’s Energy and Natural Resources Minister Tim Hodgson said the trade objective has been clearly defined by the Canadian Prime Minister, who has set measurable performance benchmarks for the partnership. Hodgson described the India–Canada trade relationship as underdeveloped relative to its potential, despite strong complementarities in energy, resources and technology. The proposed expansion is being positioned as a mutually beneficial move to enhance economic resilience for both countries.

Energy cooperation at the core

Energy has been identified as the cornerstone of the renewed partnership. Canada produces about 6% of the world’s oil but supplies less than 1% of India’s oil imports. According to Hodgson, aligning trade flows closer to global averages would strengthen energy security for India while diversifying Canada’s export markets. India already imports Canadian oil and LNG, but largely via the Gulf Coast due to infrastructure limitations.

Infrastructure, nuclear and critical minerals

New energy infrastructure under development on Canada’s west coast is expected to reduce shipping time to India by 10 days to two weeks, lowering costs and improving supply efficiency. On nuclear energy, Hodgson highlighted Canada’s high-quality uranium reserves and noted opportunities to expand supplies to support India’s target of adding 100 gigawatts of nuclear capacity. He also underlined strong Indian interest in Canadian lithium, graphite and copper, critical for solar energy, grid storage and green hydrogen, as India diversifies supply chains away from concentrated sources.

Important Facts for Exams

• India–Canada bilateral trade currently stands at around $30 billion.
• Canada is among the world’s major producers of oil and uranium.
• Critical minerals like lithium and graphite are essential for energy transition technologies.
• Energy security is a key component of India’s external economic strategy.

Economic diversification and long-term outlook

Hodgson noted that India has expanded its energy sourcing base from about 20 countries to nearly 40, while Canada is seeking to diversify its customer base beyond traditional markets. The proposed trade expansion is expected to span energy, resources and clean technology, reinforcing a long-term partnership aligned with global shifts towards resilience, diversification and sustainable growth.