The ongoing diplomatic tensions between India and Canada can have far-reaching consequences not only on the diplomatic relations but on the commercial ties between the two nations. The issue is concerning for the business community in both the countries. The rift, which has been simmering for a while now, seems to be heading toward a critical juncture. I believe if things aren’t handled with care, we could be looking at a situation not beneficial for businesses and economies on both sides.
India and Canada have a deep-rooted economic partnership. With bilateral trade exceeding $8 billion, this relationship isn’t something that either country can afford to treat lightly. Though bilateral trade with Canada is less than one per cent of India’s total trade, it still presents significant opportunities for growth, innovation, and collaboration in various sectors, including technology, agriculture, and education.
India is one of the top trading partners for Canada. Our exports to Canada have increased to $ 3.8 billion in 2023-24 from $2.0 billion in 2106-17 and we are able to narrow the trade deficit to $0.7 from $2.1 billion. Indian companies are setting up bases in all parts of Canada and are working closely with domestic companies in the field of research and development, education and hand-holding SMEs who are looking for opportunities and expanding their business internationally.
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