The diplomatic landscape between India and Canada has undergone a significant transformation following the official visit of Canadian Prime Minister Mark Carney to New Delhi this week. Marking the first bilateral visit by a Canadian leader in eight years, the summit served as a decisive ‘reset’ for economic relations. A primary outcome of the high-level talks between Prime Minister Carney and Prime Minister Narendra Modi was the formal resumption of negotiations for the Comprehensive Economic Partnership Agreement (CEPA). This framework is designed to move beyond previous ‘early progress’ discussions toward a full-scale integration of the two economies, with a target to conclude the pact by the end of 2026.
Apparel sector poised for exponential growth
The Indian apparel industry is emerging as one of the most immediate beneficiaries of this diplomatic thaw. Dr A Sakthivel, Chairman, Apparel Export Promotion Council (AEPC), indicated, the signing of the CEPA could double India’s apparel exports to Canada within the next three years. Currently valued at $250 million, these exports are projected to reach $500 million as the agreement removes trade barriers and streamlines customs procedures. Beyond simple volume increases, the AEPC anticipates a surge in investment and job creation, particularly as Canadian brands look toward India as an ‘ethical and responsible’ sourcing destination that aligns with global sustainability standards and climate action goals.
Technological synergy and supply chain resilience
The renewed partnership extends deep into the operational fabric of the textile and apparel industry. Strengthening ties are expected to facilitate a robust transfer of technologies, specifically in the realms of Artificial Intelligence and automation. This technological infusion is critical for the Indian industry to scale production and meet increasingly stringent global compliance requirements. Furthermore, both nations have underscored the importance of talent mobility and skilling. By optimizing the ‘shared potential’ of their workforces, the CEPA aims to create a more integrated and resilient supply chain that benefits from Canadian capital and Indian manufacturing capability.
The Apparel Export Promotion Council (AEPC) is the official body of Indian apparel exporters, dedicated to promoting and facilitating the growth of ‘Made in India’ garments worldwide. Managing a sector that is one of India's largest employment generators - particularly for the female workforce - the AEPC is currently focused on a roadmap to transform India into a $100 billion textile powerhouse by 2030. Key growth plans involve leveraging newly signed FTAs with the EU and the impending CEPA with Canada to diversify market reach and enhance the global competitiveness of Indian MSMEs.
