Symbolic picture.New Delhi:
The shadow of increasing diplomatic tension between India and Canada is deepening on the economic relations between the two countries. Trade talks between the two countries over a free-trade agreement have stalled due to rising tensions.
According to the government's Invest India portal, bilateral trade in goods between Canada and India stood at US$ 2022.23 billion in the financial year 8-16. Total exports from India to Canada stood at $4.11 billion while imports were at $4.05 billion.
Canada is the 18th largest foreign investor in India. Between April 2000 and March 2023, canada invested a total of $ 3.3 billion in India. Canada's share is just 0.5% of the total FDI in India. Canadian pension funds have invested USD 55 billion in India.
In May this year, the sixth round of Ministerial Dialogue on Trade and Investment between India and Canada was held in Ottawa, in which it was agreed to increase mutual trade.
More than 600 Canadian companies do business in India and more than 1,000 companies are actively doing business in the Indian market. Indian companies in Canada are very active in sectors like information technology, software, steel, natural resources and banking.
Obviously, Indian companies doing business in Canada have invested well in the economy there. Now the industry is under stress due to the increasing tension between the two countries.
According to government data, the major items of India's exports to Canada include gems, jewellery and precious stones, pharmaceutical products, readymade garments, light engineering goods, iron and steel articles. While India imports important goods like pulses, newsprint, wood pulp, asbestos, potash, iron scrap, copper, minerals and industrial chemicals from Canada.
Indian immigrants constitute a little over 4% of the total population in Canada. According to the Ministry of External Affairs, there are about 16 lakh people of Indian origin and 7 lakh NRIs living in Canada.