Doing business in India: Opportunities for Canadian exporters

India offers Canadian exporters opportunities in digital industries and artificial intelligence (AI), advanced manufacturing, clean technology, energy and infrastructure, as its $4-trillion economy modernizes. Success requires a long-term approach, strong local partnerships, careful regional targeting and preparation for price competition, regulatory complexity and infrastructure gaps. Export Development Canada (EDC) can help companies assess the market, manage risk, access financing and build local connections.

India’s expanding, US$4-trillion economy, growing middle class and world-leading population of 1.5 billion make it an appealing market for Canadian exporters looking to diversify.

Already the Asia-Pacific’s third-largest economy, India is pursuing a multi-decade strategy to transform from a lower-middle-income to a high-income economy by 2047—the 100^th anniversary of the nation’s independence.

As it pivots to industries of the future, India is making massive investments in digital transformation, advanced manufacturing, artificial intelligence (AI), infrastructure, clean energy and workforce skills.

These developments are significant for India’s economic trajectory and Canada’s trade and investment prospects in the Asia-Pacific region. While commodity exports anchor our trade today, India’s modernization push is creating demand for technologies, services and expertise that align closely with Canadian strengths.

“This is not the India of 10 or 15 years ago. India is building the value chains and industries that will drive its next generation of growth,” says Neil Krell, Export Development Canada’s (EDC) chief representative for South Asia.

“India is ideally positioned to benefit from the global shift toward building resilient, diversified global supply chains. Ambitious investments in advanced manufacturing, energy transition, and digital infrastructure for AI present opportunities for Canadian companies with proven solutions to integrate into new value chains from the ground up,” says Krell.

“The fact that this transformation is at the early stages—relative to a lot of developed markets—is creating a timely opening as Canadian companies,” he says.

Recent developments in the bilateral relationship have positioned Canada to support India’s next phase of new-age, tech-driven growth:

• The Canadian and Indian governments committed to strengthening bilateral trade and investment ties and increasing commercial opportunities for businesses in both countries.
• Prime Minister Mark Carney’s visit to India in March 2026 led to five agreements and ambitious initiatives spanning energy and critical minerals, technology and AI, talent and culture, and defence.
• In May 2026, India’s Minister of Commerce and Industry, Piyush Goyal, led the country’s largest-ever trade mission to Canada. He also reaffirmed India’s commitment to strengthening bilateral trade and investment ties with Canada.

“Both governments are sending a clear signal that they want to advance a more ambitious economic partnership that leverages complementary strengths and shared priorities. These efforts are helping clear the runway for trade and investment to accelerate,” says Krell. 

The Canada-India Comprehensive Economic Partnership Agreement (CEPA), targeted for completion in 2026, could expand market access and help Canadian companies compete with countries, like Australia, that already have a trade agreement with India. The European Union (EU) has also completed negotiations with India on an agreement that’s pending formal signing and ratification.

India’s fast economic growth and favourable demographics add to the market’s appeal for Canadian exporters. The median age in India is 29, with 42% of the population under the age of 25. The country’s burgeoning middle class is projected to reach 50% of the population by 2030.

Over the past decade, India has been among the world’s fastest-growing major economies, expanding on average 6% annually and outpacing China, says Nadeem Rizwan, senior economist and country risk analyst at EDC.

“We expect it to maintain this strong growth over the next five years, supported by domestic demand, investment and continued economic modernization,” he adds.

Canada and India share a strong commercial relationship and deep interpersonal ties, thanks to Canada’s large Indian diaspora. Hundreds of Canadian companies currently operate in India in sectors like clean technology, agri-food, infrastructure, banking, insurance, advanced manufacturing and the digital economy. 

Canada-India bilateral trade has room to grow. In 2025, India was Canada’s 11^th largest goods market, with total Canadian merchandise exports dropping to $3.9 billion from $5.3 billion in 2024. Canadian services exports to India totalled $15.1 billion in 2025. But policy changes to international study permits are expected to reduce Indian student enrolment—a significant source of Canadian service exports—a significant source of Canadian service exports.

Canadian investment is another vital pillar in the bilateral relationship that supports value chain integration and improved competitiveness. In 2024, total direct and indirect Canadian investment in India surpassed $110 billion, led by Canadian institutional investors and pension funds that are making significant investments in renewable energy, transportation and telecommunications infrastructure, and commercial real estate in India.

Canadian exporters are also making valuable investments in India by setting up local sales, service and manufacturing facilities.

Achieving the countries’ shared goal of doubling bilateral trade by 2030 will require annual growth of approximately 14% to 15%, significantly above historical trends, says Rizwan. “It will depend on a combination of expanding established sectors while creating new engines of growth in higher-value industries,” he adds.

Commodities currently dominate Canada’s exports to India, but new opportunities are emerging in sectors that align with Canadian expertise.

“The opportunity is not to replace commodity trade, but to combine Canadian resources, technology and services within Indian value chains. These areas align closely with the bilateral priorities of clean energy, critical minerals, advanced manufacturing and digital technologies,” says Rizwan.

India offers a unique combination of sustained economic growth, exceptional market scale and rapid structural transformation. As India modernizes its economy, EDC sees strong opportunities in several key areas where Canadian capabilities align with market needs. 

Digital industries, AI and ICT

India has the world’s second-largest internet network. Its digital economy accounts for 12% (about $400 billion) of gross domestic product (GDP) and is projected to reach 20% by 2030.

Government initiatives such as Digital India, 5G rollout and AI-driven infrastructure are fuelling this growth and creating opportunities for Canada’s digital industries sector, including:

• Cybersecurity
• Cloud services
• Digital payments
• Fintech
• Internet of Things (IoT)

According to the United Nations Conference on Trade and Development (UNCTAD), India was ranked among the Top 10 hosts of data centre investments in the world in 2025.

India’s investment in AI and AI data centres could create opportunities for Canadian companies across the value chain.

“India is still in the early stages of building out its AI data centre capacity. Canadian companies with advanced capabilities can see opportunities in supplying equipment and technology that go into AI data centres—from energy systems, building utilities and specialized equipment to software, AI applications and agentic AI,” says Krell.

India’s e-commerce boom has also created new opportunities for companies with solutions for last-mile connectivity, inventory management and delivery technologies to support the e-retail space.

Products and services targeted at India’s young, tech-savvy population may also find a market here. Digital wallets and the homegrown Unified Payments Interface (UPI) have democratized digital services throughout India.

While local inventory management and warehousing of goods remain important, the shift to digital payments and the proliferation of e-commerce platforms offer new channels for Canadian companies to reach Indian consumers. 

Advanced manufacturing

Canada’s push for market diversification is finding a match in India, where a drive for heavy investment in advanced manufacturing is paving the way for Canadian businesses. 

“This is one big area where Canadian firms have expertise in everything from automation and testing solutions to industrial AI,” says Krell.

India’s industrial strategy in this broad sector is focused on: 

• Electronics
• IT hardware
• Pharmaceuticals
• Automobiles
• Batteries
• Solar equipment
• Telecommunications
• Semiconductors 

The Government of India’s production-linked incentive (PLI) scheme covers 14 sectors, along with logistics corridors and infrastructure investment. Canadian participation could be strongest in critical mineral processing, clean energy components, industrial automation, aerospace and life sciences. 

In 2025, mechanical and electrical machinery and equipment accounted for roughly 10% of Canada’s merchandise exports to India. This represented less than 1% of India’s total imports in these categories from around the world. While Canada’s current presence in the sector is small, EDC sees considerable potential for expansion as India’s digital transformation picks up speed.

Clean technology and energy transition

India is an energy-hungry country looking to source 50% of its power from renewables by 2030, reaching net zero by 2070. In 2024, approximately 83% of power sector investment went to clean energy. 

India and Canada are developing a significant, long-term partnership on energy and energy transition, creating opportunities in liquefied natural gas (LNG) and renewables, including nuclear, clean technology, CCUS (carbon capture, utilization and storage), hydrogen and electrical infrastructure, as both countries pursue energy security and economic growth.

Canada and India signed a $2.6-billion, long-term uranium supply agreement in March 2026 during Prime Minister Carney’s official visit to New Delhi. It addresses a critical bottleneck for India: It has domestic uranium reserves, but they’re limited in quality and quantity. The agreement is expected to address India’s long-term nuclear energy goals and ensure stable and predictable fuel supply for its pressurized heavy water reactors (PHWRs).

Relentless growth and investment in wind and solar power are opening doors for companies in Canada’s cleantech sector. The expansion is driving demand for energy management software and specialized components used within renewable energy facilities.

“Further potential exists for Canadian businesses offering advanced solutions for future energy systems,” Krell says. “Key growth areas include smart grids, modern transmission infrastructure and direct, utility-scale renewable power generation.”

Robust sustainability agendas are driving leading Indian companies to make investments that improve environmental performance. Canadian companies are well-positioned to accelerate this transition through advanced decarbonization solutions and optimized resource management, particularly in water efficiency.

Infrastructure and urban development

The World Bank estimates India will need more than $800 billion in investments by 2036 for urban infrastructure, fuelling demand for smart cities, reliable power and efficient transport systems. 

“The Indian government has increased capital expenditure approximately sixfold over the past 10 years, reaching about 3.1% of GDP. This continued investment in roads, railways and airports should generate opportunities for Canadian exporters in specialized engineering, transportation, digital solutions and related professional services,” says Rizwan.

Rather than a single marketplace, India is a combination of regional economies, each with millions of consumers. India’s regions are diverse, with distinct commercial practices, industrial specializations and market forces.

Along with working with a local partner, understanding these dynamics and targeting the region best suited to your industry can help to ease market entry for Canadian companies:

• Competition: India is a dynamic market. Exporters should be prepared to compete with domestic firms and established international players from Europe and Asia. “India is a fast-moving economy, so companies need to be ready to deliver when an opportunity comes,” says Krell.
• Complex and evolving regulation: Trade barriers and a regulatory regime that can change without notice make the Indian market unpredictable. Rules and procedures can lack transparency, making it harder to navigate Indian customs clearances and obtain permits. Recent efforts to reduce complexity for businesses, such as India’s rationalization of its goods and services tax, are improving the regulatory environment.
• Infrastructure gaps: While India is urbanizing and fast-tracking the building of roads, airports, ports and power grids, bottlenecks still exist. But there’s an opportunity here for Canadian companies to participate in India’s modernization drive.
• A different business culture: Indians use personal relationships to build mutual trust to a degree that’s less common in Canada. The relationship-driven nature of Indian business is why local partners can be critical, especially at the market entry stage. “Being a large and regional market, it can be difficult to navigate on your own,” says Krell.
• Diversity: Being a large and diverse country with 28 states, eight federal districts and 22 official languages, India is many cultures rolled into one. While this heterogeneity offers a huge opportunity, it can also be complex to navigate.
• Environmental, social and governance (ESG): As with any market, there are ESG challenges and opportunities associated with doing business in India. EDC encourages all Canadian companies to follow the Government of Canada’s approach to responsible business conduct abroad.

Preparation, patience and the right relationships can help set you up for success in India:

• Be patient. It can often take one to three years from market exploration to your first contract. Canadian companies need to invest time and resources to understand the market and their target customers. They should familiarize themselves with Indian labour laws, taxation and intellectual property (IP) protection. “Take your time to get it right, so you’re ready when the opportunity comes,” says Krell.
• Be present and find the right local partner. Face-to-face relationships and a trusted distributor or joint-venture partner can provide the reach, market knowledge and credibility needed to compete in India. “Given the complex and personal nature of the business environment, working with Indian partners can help Canadian companies overcome some of the market’s key challenges,” says Krell.

EDC can help connect Canadian exporters with potential partners and provide insights into the local market based on our relationships with leading Indian companies and investors.

• Price strategically, compete on value: Competition is fierce in India and Canadian companies may find it difficult to win contracts on price alone. But Canada’s reputation for quality can open doors in the right sectors. “While Indian firms and consumers are price conscious, customers are ultimately seeking value. This is particularly true in high-value-added industries, where innovative technology paired with reliable execution and strong after sales service are top of mind for buyers when evaluating new suppliers,” says Krell.

If India’s on your export growth radar, EDC can help you assess the opportunity, understand the risks and prepare for entry into the Indian market. With expertise in international markets and a well-established presence in India, EDC can support Canadian companies with market intelligence, risk management solutions, financing support and connections that can help you enter the country with more confidence.

EDC can also help you navigate practical export challenges—from managing payment and credit risk to strengthening your working capital—as you pursue new opportunities. And when local market knowledge or on-the-ground introductions are needed, Canada’s Trade Commissioner Service (TCS) can help you better understand the business environment and identify potential contacts.

EDC solutions for exporters include:

• A full suite of trade credit insurance products to lower your risk for doing business abroad
• Support with getting access to working capital
• Expertise to enable you to learn more about international markets
• Connections to international companies in need of your products and services

Ready to take the next step on your market diversification pathway? Connect with EDC to discuss your plans for India.