India, Canada ready to fast-track bilateral investment treaty talks
India and Canada agreed to fast-track negotiations toward a Bilateral Investment Treaty (BIT), alongside ongoing talks on a Comprehensive Economic Partnership Agreement (CEPA), which both sides aim to conclude by end-2026
The inaugural India-Canada Finance Ministers' Economic and Financial Dialogue was held, exploring cross-border payment collaboration and expansion of UPI acceptance in Canada through partnerships with local payment service providers
Both countries agreed to explore cooperation on critical minerals, with a focus on building resilient and diversified supply chains for clean energy and advanced technology
The two sides set a target of increasing bilateral trade to CAD 70 billion by 2030
Bilateral Investment Treaty (BIT) vs CEPA/FTA
A BIT is a treaty focused narrowly on protecting and promoting foreign investment (expropriation safeguards, fair treatment, dispute resolution) between two states, distinct from a CEPA/FTA, which is a comprehensive agreement liberalising trade in goods, services, and investment together, including tariff reduction.
Key Details
- India adopted a new Model BIT in 2016 after terminating most of its older BITs (2016-17), following adverse international arbitration rulings; it dilutes investor-state protections and preserves the state's "right to regulate," and mandates exhaustion of local remedies before international arbitration
- Investment liberalisation chapters within a CEPA/FTA also cover the "pre-establishment" phase (market access for new investment), while stand-alone BITs traditionally protect only the "post-establishment" phase
- India already has a BIT-equivalent Investment Protection Agreement with the UAE (2024) using the post-2016 template
- Key sticking points in India-Canada BIT talks include Canada's demand for Most Favoured Nation (MFN) treatment and dispute-settlement (ISDS) design
The fast-tracked BIT talks run parallel to, but are legally distinct from, the CEPA negotiations — the BIT would govern investor protection while CEPA governs trade liberalisation.
UPI's Global Expansion and NPCI International
Unified Payments Interface (UPI), India's real-time payment system built by the National Payments Corporation of India (NPCI), is being extended abroad through NPCI International Payments Limited (NIPL) via partnerships with foreign payment providers and banks, rather than direct NPCI operation.
Key Details
- UPI is already live for payments/acceptance in countries including Singapore, UAE, Bhutan, Nepal, Sri Lanka, Mauritius, France, Qatar, Greece, and Cambodia (2026)
- Cross-border P2P remittance corridors currently operate with Singapore (via UPI-PayNow linkage) and Nepal
- NPCI is in discussions for further expansion, including with Canada, Japan, Malaysia, and Bahrain
The India-Canada dialogue seeks to broaden UPI acceptance in Canada through tie-ups with Canadian payment service providers — an NIPL-style partnership model rather than a treaty provision.
Critical Minerals Cooperation and India's Supply Chain Strategy
Critical minerals (lithium, cobalt, rare earths, nickel, graphite) are essential inputs for clean energy technologies (EV batteries, solar cells) and are geographically concentrated in supply, making diversified partnerships a strategic priority for import-dependent economies like India.
Key Details
- India operationalised the National Critical Mineral Mission (2024-25) and set up KABIL (Khanij Bidesh India Ltd.) in 2019 as a joint venture of NALCO, HCL, and MECL to secure overseas critical mineral assets
- India is a member of the US-led Mineral Security Partnership (MSP) launched in 2022
- Canada holds substantial reserves of lithium, nickel, cobalt, and rare earth elements and has its own Critical Minerals Strategy (2022)
The critical minerals dialogue with Canada is aimed at diversifying India's mineral supply chains away from concentrated sources, complementing KABIL's overseas-asset acquisition mandate.
- Bilateral trade target: CAD 70 billion by 2030
- India's Model BIT adopted: 2016
- CEPA negotiations targeted for conclusion: end-2026
- UPI live in 9+ countries as of 2026, including Singapore, UAE, France, Qatar, Greece, Cambodia
- KABIL established: 2019, promoted by NALCO, HCL, MECL
- India joined Mineral Security Partnership: 2022