G7 Summit: India-Canada Trade Grew 3.2% To $8.6 Billion In FY25
The top 10 exports from India to Canada accounted for 57.2% of the total exports.
As Prime Minister Narendra Modi heads to Canada for the G7 Summit as a special invitee, the focus will be to reset the economic and business relations between the two countries, which have been at odds with each other for over a year.
Prime Minister Modi and his counterpart Mark Carney will meet at the summit and Indian officials have signalled their government's plan to have better cooperation on law enforcement for sharing information, while enhancing economic cooperation.
India and Canada have been negotiating a trade agreement for over a decade, which had been put on slow burner as diplomatic ties severed during the tenure of former Canadian Prime Minister Justin Trudeau. This was as simmering tensions surrounding the Khalistani movement in Canada came to boiling point after a slew of allegations following the killing of Sikh separatist leader, Hardeep Singh Nijjar, in June 2023.
Trade between the two countries grew 3.2% in financial year 2025 to $8.6 billion, with India facing a trade deficit in the last two years. India's exports amounted to $4.2 billion in fiscal 2025, while its imports were worth $4.44 billon. While exports grew 9.8% in FY25, imports fell marginally during the same period.
The top 10 exports from India to Canada accounted for 57.2% of the total exports, while top 10 imports were more concentrated and accounted for 83.7% of total imports.
The top 10 exports and imports accounted for nearly 71% of the total trade, according to data disclosed by Director General Foreign Trade.
India continued to be the largest importer of edible vegetables, worth nearly a billion dollars in FY25. This was followed by crude derivatives from Canada. While, pharmaceutical products were the biggest exports to Canada, followed by heavy machinery like nuclear reactors, boilers and other machinery.
Canadian prime minister Carney is putting emphasis on economic ties and alliances that would allow Canada to reduce dependence of the US. This is in contrast to his predecessor Trudeau, who had climate change and progressive social values as front and center of his approach.
