Nirmala Sitharaman Seeks Canadian Investment In India’s Banking, Insurance, Fintech And Semiconductor Sectors

Finance Minister Nirmala Sitharaman has invited Canadian investors to step up investment in India, pointing to opportunities across financial services, fintech, semiconductors, rare earths and other emerging sectors.

Speaking to members of the Indian business community in Toronto on Wednesday, Sitharaman said India's expanding economy, large consumer base and young population make the country an attractive long-term investment destination.

She said India's growth is being supported by structural changes, including urbanisation, the expansion of the middle class and the development of digital infrastructure.

“For Canadian investors with long time horizon, India offers a combination that is difficult to match,” Sitharaman said, referring to India's scale, sustained growth, consumption and deepening capital markets.

Banking, Fintech And Insurance In Focus

Sitharaman highlighted financial services as one of the areas where India and Canada could deepen cooperation.

She pointed to the growth of Indian banks and non-banking financial companies (NBFCs), as well as the country's fintech ecosystem, as potential areas for Canadian capital and expertise.

India's digital payments infrastructure has also created opportunities for collaboration, she said. Sitharaman specifically highlighted the Unified Payments Interface (UPI), which

completed a decade on August 25 and has become one of the world's largest real-time payment systems by transaction volume.

She said Canadian banks, fintech companies and regulators could work with their Indian counterparts on the next generation of digital financial infrastructure.

The Finance Minister also pointed to GIFT City, India's international financial services centre, as another avenue for overseas institutions looking to establish a presence in the country.

She said the centre's regulatory and tax framework was designed to facilitate cross-border financial activity and had already attracted foreign banks.

The opening of India's insurance sector is another potential avenue for foreign investors, with 100% foreign direct investment now permitted in the sector, Sitharaman said.

India offers opportunities in semiconductors, rare earths

Sitharaman also identified semiconductors, magnets and rare earths as sectors with significant potential for Canadian investors.

India's push to develop domestic manufacturing and supply chains could create opportunities for companies operating in these areas, while also providing global businesses with alternative sources of supply.

“India can also provide trusted and cost-effective supply-chain alternatives for global markets,” she said.

She invited Canadian investors and companies involved in rare earths to participate more actively in India's growth.

India-Canada Economic Ties

Sitharaman's comments come as India and Canada work to rebuild and expand their economic relationship.

Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney had agreed to reset bilateral ties during their meeting on the sidelines of the G7 Summit in June 2025.

The relationship gained further momentum during Carney's visit to India earlier this year, when the two countries formally launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA).

The visit also included a CAD 2.6 billion uranium agreement with Cameco and an ambition to more than double bilateral trade to CAD 70 billion by 2030.

Sitharaman said the relationship was moving beyond conventional capital flows towards broader institutional cooperation.

“Capital markets are only one dimension of a modern financial partnership,” she said.

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