The India-Canada Joint Statement from the 7th Ministerial Dialogue on Trade and Investment (MDTI), held in New Delhi, reaffirms the strength and continuity of the bilateral economic partnership. The dialogue, held pursuant to directions from the countries’ Prime Ministers, noted robust growth in bilateral trade.
Trade Volume: Total trade in goods and services reached US$23.66 billion in 2024.
Merchandise Growth: Merchandise trade specifically saw a substantial 10% increase over the previous year, valued at nearly US$8.98 billion.
Investment: The Ministers welcomed the steady expansion of two-way investment flows, noting the presence of Canadian institutional investment in India and the growing number of Indian firms in Canada, which collectively support thousands of jobs in both economies.
Strategic Policy Commitments
The core of the commitment shifted toward forward-looking supply chain resilience and strategic sectors where both countries have strong complementarities:
Critical Minerals and Clean Energy: Ministers agreed to encourage long-term supply chain partnerships in critical minerals and clean energy collaboration. This is deemed essential for energy transition and new-age industrial expansion.
Aerospace and Dual-Use Capabilities: A commitment was made to identify and expand investment and trading opportunities in aerospace and dual-use capabilities partnerships. This strategy leverages Canada’s established presence and the ongoing growth of India’s aviation sector.
Resilience and Stability: The Ministers underscored the relevance of strengthening supply chain resilience in critical sectors, including agriculture, as essential for long-term economic stability.
The focus on critical minerals reflects a strategic shift driven by global energy transition, as both nations seek diversified, secure supply chains for inputs like lithium, cobalt, and graphite, vital for electric vehicles and renewable energy technology. The inclusion of dual-use capabilities (technologies with both civilian and military applications, such as advanced aerospace components or AI) signals a deeper level of security and technological trust, moving the partnership beyond conventional trade to shared strategic interests.
Relevant Question for Policy Stakeholders: What specific policy mechanism should India and Canada jointly establish to expedite investment flows in the agreed-upon critical minerals supply chain projects?
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