News Desk: India and Canada are exploring a deeper energy partnership as both countries work to finalise a comprehensive free trade agreement before Prime Minister Narendra Modi’s expected visit to Canada in December.
According to people familiar with the discussions, the proposed partnership could establish a two-way energy supply chain, with India importing crude oil and natural gas from Canada while supplying refined petroleum products in return.
A Canadian negotiating team is expected to visit New Delhi early next month for the sixth round of negotiations on the Comprehensive Economic Partnership Agreement (CEPA). Both countries are working to conclude the agreement before Modi’s scheduled visit to Canada on December 11 and 12.
The proposed energy cooperation could cover crude oil, liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, uranium and refined petroleum products. Officials believe the partnership could strengthen energy security and create new opportunities for businesses in both countries.
Canada is one of the world’s leading producers of crude oil and natural gas, with substantial oil sands reserves. India, meanwhile, is the world’s third-largest crude oil consumer and a major refining hub.
The two countries could benefit from their complementary capabilities. Many Canadian refineries face technical limitations in processing heavy, bituminous crude extracted from Alberta’s oil sands. However, some Indian refineries are equipped to process different types of crude oil.
This could allow India to import Canadian crude and export processed fuels and petroleum products to Canada, creating opportunities for both sides.
The renewed engagement follows a series of high-level visits and meetings aimed at improving bilateral relations. Modi and Canadian Prime Minister Mark Carney held discussions at international summits, followed by Carney’s visit to India earlier this year.
In May, Commerce and Industry Minister Piyush Goyal led a trade delegation comprising representatives from more than 100 Indian companies to Canada. Canadian Foreign Minister Anita Anand and Trade Minister Maninder Sidhu subsequently visited India in October. Sidhu was accompanied by a business delegation of around 300 representatives.
Negotiations for the CEPA began in March 2026, and five rounds of discussions have since taken place. According to people familiar with the talks, significant progress has been made, with most key issues reportedly resolved.
Both countries aim to increase bilateral trade in goods and services to Canadian $70 billion by 2030. Their combined trade reached Canadian $30.4 billion in 2025.
If concluded, the agreement could expand market access, strengthen energy cooperation and deepen economic ties between India and Canada.
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