Canada Targets Fertiliser Growth in India as Fairfax Investment Gains Approval
Canada is exploring opportunities to increase fertiliser and potash shipments to India following Indian approval for Fairfax Financial Holdings Limited (TSX:FFH) to acquire a 60.7% controlling stake in IDBI Bank Limited (NSE:IDBI). Canadian Trade Minister Maninder Sidhu highlighted the banking transaction as a major milestone signaling stronger supply-chain ties between both nations as they work toward a Comprehensive Economic Partnership Agreement.
The commercial relationship between the two countries continues to expand, with two-way merchandise trade hitting $10.9 billion in 2025 and total bilateral trade reaching $7.96 billion in fiscal year 2026. The proposed trade deal could lower trade barriers and improve market access, potentially lifting bilateral trade by $4.4 billion to $6.5 billion and boosting Canadian gross domestic product by $3.8 billion to $5.9 billion by 2035.
Negotiators recently completed the fifth round of trade talks in Ottawa, addressing market access, intellectual property, investment, and trade remedies. The next round of negotiations is scheduled for early November in New Delhi, as both governments remain focused on concluding the trade deal by the end of 2026.
Key points
- India approved Fairfax Financial Holdings Limited's proposed acquisition of a 60.7% stake in IDBI Bank Limited.
- Canada and India aim to finalize a Comprehensive Economic Partnership Agreement by the end of 2026.
- Canada is looking to expand exports of fertiliser and potash to support agricultural productivity in India.
- The proposed trade agreement could increase bilateral trade by up to $6.5 billion and boost Canadian GDP by up to $5.9 billion by 2035.
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How we writeDisclaimerQuestions and answers
What stake is Fairfax Financial acquiring in IDBI Bank?
Fairfax Financial Holdings Limited is acquiring a 60.7% controlling stake in IDBI Bank Limited, marking the largest financial sector transaction between Canada and India.
When do Canada and India plan to conclude their trade agreement?
Both countries are aiming to conclude negotiations on the Comprehensive Economic Partnership Agreement by the end of 2026, with the next negotiation round set for early November in New Delhi.
How could the proposed Canada-India trade deal affect bilateral trade?
Estimates suggest the trade agreement could increase bilateral trade by $4.4 billion to $6.5 billion and expand Canada's gross domestic product by $3.8 billion to $5.9 billion by 2035.