Prime Minister Narendra Modi and Prime Minister Mark Carney have signed the Terms of Reference (ToR) for the India–Canada Comprehensive Economic Partnership Agreement (CEPA), marking a major strategic reset in bilateral trade and investment. Announced on March 2, 2026, the agreement specifically prioritizes a "Critical Mineral Corridor" to secure India's supply of lithium, cobalt, and potash, essential for its EV and semiconductor ambitions. The CEPA framework also introduces a "Trusted Investor" fast-track to facilitate large-scale capital flow from Canadian pension funds into Indian infrastructure and green energy. Furthermore, the ToR expands civil nuclear cooperation to include Small Modular Reactors (SMRs) and establishes a joint AI & Quantum Computing Lab, aiming to double bilateral trade to $20 billion by 2030.
Key Pillars of the 2026 CEPA Framework
Critical Mineral Corridor: Establishing a secure, preferential supply chain for 31 minerals essential for India's high-tech manufacturing transition.
Clean Energy & SMR Cooperation: Expanding nuclear ties to include Small Modular Reactors (SMRs) and green hydrogen technology exchange.
Trusted Investor Fast-Track: Streamlining regulatory approvals for Canadian institutional investors (CPPIB, CDPQ) in Indian infrastructure projects.
Digital Trade & Innovation: Harmonizing standards for cross-border data flows and launching a joint AI & Quantum Computing Lab.
Agri-Tech & Fertilizer Security: Formalizing long-term supply contracts for potash and pulses to stabilize India's agricultural input costs.
Mobility & "Innovation Visa": Introducing a dedicated visa category for STEM professionals and researchers to facilitate high-skill labor mobility.
What are the "Terms of Reference (ToR)"? The Terms of Reference (ToR) act as the mechanical legal framework that defines the scope, timeline, and negotiating objectives of a trade agreement. In the 2026 context, the ToR provide the "Technical Fidelity" needed to transition from diplomatic dialogue to binding commitments across 24 specific chapters, including labor standards and digital trade. By signing the ToR, both nations have committed to an accelerated schedule to conclude the "Early Progress Trade Agreement" (EPTA) by the end of 2026.
Policy Relevance: Resource Sovereignty and Institutional Capital
Securing the High-Tech Supply Chain: The critical mineral partnership serves as a primary mechanic for India to diversify its mineral imports, ensuring "Implementation Fidelity" for its domestic semiconductor and EV battery manufacturing goals.
Operationalizing Long-Term Capital: The "Trusted Investor" status acts as a "Strategic Barrier Removal"tool, enabling Canadian pension funds—which manage trillions in assets—to provide the patient capital required for India's National Infrastructure Pipeline.
Technical Integration in Energy: The focus on Small Modular Reactors (SMRs) provides a mechanical solution for decentralized, carbon-free power for industrial hubs, aligning India's energy grid with Canadian nuclear expertise.
Bypassing Talent Bottlenecks: The "Innovation Visa" is a functional tool to ensure that the high "AI Exposure" of the Indian service sector is mitigated by a steady exchange of high-skill researchers and STEM talent.
Relevant Question for Policy Stakeholders: What policy-level frameworks are required to enable real-time verification of academic credentials between Indian and Canadian universities to operationalize the "Innovation Visa"?
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Joint statement by Prime Minister Carney and Prime Minister Modi
Terms of Reference Signed for India–Canada Comprehensive Economic Partnership Agreement
