India and Canada are progressing in their negotiations on a Comprehensive Economic Partnership Agreement (CEPA), which could lead to enhanced energy cooperation between the two nations. As discussions advance, both countries are considering establishing a two-way energy supply chain. This would involve India importing Canadian crude oil and natural gas, while exporting refined petroleum products back to Canada.
Canadian trade negotiators are scheduled to visit New Delhi next month for the sixth round of talks, with both sides aiming to finalize the agreement before Indian Prime Minister Narendra Modi’s planned visit to Canada on December 11–12. The CEPA negotiations, which began in March 2026, have already seen five rounds of discussions by October.
Potential areas of cooperation in the energy sector include crude oil, liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, uranium, and refined petroleum products. Canada is recognized as a major energy producer, while India is among the world’s largest consumers of crude oil and natural gas, possessing an extensive refining industry. This complementary relationship could allow Canadian producers to benefit from the technical capabilities of certain Indian refineries, which can process a wider range of crude grades.
The bilateral relations between India and Canada have seen increased momentum, bolstered by several high-level visits and trade discussions involving officials and business representatives from both countries. The proposed CEPA aims to boost bilateral trade to C$70 billion by 2030, a significant increase from the C$30.4 billion recorded in 2025.
By capitalizing on their respective strengths in energy production and consumption, India and Canada are looking to deepen their economic ties and create mutual benefits through the CEPA. As the negotiations continue, both nations remain optimistic about reaching a comprehensive agreement that will enhance trade and cooperation in the years to come.