India and Canada are rushing to finish a Comprehensive Economic Partnership Agreement, or CEPA. Here is what the deal is and why it matters.

A CEPA is a trade pact that cuts tariffs and opens markets. It covers goods, services and investment. The fifth round of talks starts on October 5. Both sides want a deal by end-2026.

The prize is big. Two-way trade was $30.4 billion in 2025. The target is $70 billion by 2030. A pact could more than double trade in five years.

India sells Canada pharmaceuticals, steel, seafood, garments, electronics and chemicals. Canada sells India pulses, coal, fertilisers, paper and crude oil. Services trade is led by IT and telecom.

Tariff cuts would make Indian goods cheaper in Canada and Canadian goods cheaper in India. Services firms could get easier access to each other’s markets.

The politics matter too. Ties were strained for years. Commerce Minister Piyush Goyal called the next 90 days a “defining period” for the relationship.

If the talks hold pace, the CEPA could be the biggest reset in India-Canada ties in a decade.