India and Canada are deepening economic ties, with bilateral goods trade reaching CAD 13.32 billion in 2024 and services trade hitting CAD 19.61 billion. For overseas jewelry buyers, this signals potential tariff reductions and smoother supply-chain integration under a planned Comprehensive Economic Partnership Agreement (CEPA), particularly for India's gems and jewellery exports, which remain a key category.
Trade data highlights
According to India's Ministry of External Affairs (MEA), bilateral goods trade stood at CAD 13.32 billion in 2024. In the first ten months of 2025, goods trade reached CAD 11.09 billion, reflecting sustained momentum. India's key exports include pharmaceuticals, electronic goods, gems and jewellery, seafood, and engineering products. Major imports from Canada comprise minerals, pulses, potash, paper products, and scrap metals.
Services and investment flows
Services trade is even more substantial. In 2024, bilateral services trade touched CAD 19.61 billion. Between January and September 2025, services trade amounted to CAD 14.15 billion, highlighting deep interdependence in IT, financial services, and education. Portfolio investments from Canada into India are estimated at over CAD 100 billion, with more than 600 Canadian companies operating in India and over 1,000 exploring opportunities.
Energy cooperation and supply-chain implications
Energy cooperation is gaining traction. During India Energy Week 2026 in Goa, Canadian Energy Minister Timothy Hodgson and India's Petroleum Minister Hardeep Singh Puri relaunched the India–Canada Ministerial Energy Dialogue. Canada's role as a supplier of oil, gas, LNG, and critical minerals complements India's growing energy demand, potentially stabilizing input costs for jewelry manufacturing.
What buyers should watch
Both sides are preparing to launch negotiations for a Comprehensive Economic Partnership Agreement (CEPA), expected to deepen trade, diversify supply chains, and enhance investment flows. For jewelry importers, this could mean reduced duties on Indian gems and jewellery entering Canada, and more predictable trade terms. Monitoring CEPA progress is advisable for buyers sourcing from India or considering Canadian distribution channels.
China sourcing context
While India remains a major hub for cut and polished diamonds, colored gemstones, and gold jewelry, the expanding India-Canada trade corridor offers an alternative route for buyers seeking to diversify supply chains away from over-reliance on any single market. The planned CEPA could make India an even more competitive sourcing destination for North American buyers.
Source: Read the original report | Published: February 27, 2026