Closer India-Canada Economic Cooperation Gains Importance Amid Global Uncertainty: Sitharaman

Closer economic cooperation between India and Canada has assumed greater significance amid a rapidly changing global landscape marked by geopolitical uncertainty, Union Finance Minister Nirmala Sitharaman said, calling for stronger partnerships to build resilient, sustainable and inclusive economies.

"The world is going through a profound transformation. There's just a lot of uncertainty everywhere. And the geopolitical and economic realities are constantly evolving," Sitharaman said while addressing a joint briefing after the inaugural Economic and Financial Dialogue between India and Canada at Toronto.

Against this backdrop, she said closer economic cooperation between the two countries would be important to build resilient, sustainable and inclusive economies in both Canada and India.

Her remarks come amid evolving global economic and geopolitical conditions that have heightened the need for greater international cooperation to strengthen economic resilience and promote inclusive growth.

Sitharaman further said the economic and financial dialogue between India and Canada reflects the shared ambition to move beyond traditional trade in goods and services and build a deeper economic partnership encompassing investment, finance, capital markets and regulatory cooperation.

Prime Minister Narendra Modi and his Canadian counterpart have set an ambitious goal for strengthening bilateral ties, giving fresh momentum and strategic direction to the relationship, she said.

The discussions with her counterpart François-Philippe Champagne covered three broad areas: macroeconomic developments and domestic policy priorities in both countries; practical avenues for financial-sector cooperation; and broader international and multilateral cooperation on issues of shared interest.

Highlighting that India has demonstrated 'remarkable macroeconomic resilience', she said the complementarities between the two economies, along with considerable scope for expanding investment and economic cooperation.

On financial-sector cooperation, she said the two sides explored areas including cross-border payments, financial stability, fintech and capital markets.

"There is considerable potential for our financial systems to work together more closely and facilitate greater flows of trade, investment and also remittances," she said while sharing the outcome of the Dialogue.

The two countries also discussed opportunities for broader cooperation on issues of common interest, including critical minerals and energy security.

Sitharaman said greater India-Canada cooperation in these areas could contribute to more resilient and diversified global supply chains.

This was not just a dialogue, she said, adding that the two sides had identified specific areas for follow-up.

Officials from both countries will continue discussions to take forward the identified areas and work towards concrete outcomes, she added.