Diplomatic spat unlikely to hit trade, investment between India, Canada

New Delhi, September 19

The deterioration of diplomatic ties may not impact bilateral trade and investment, but will put a stop to any possibility of a further step-up in ties, especially in sensitive areas like civilian nuclear energy.

However, barring a stop to new initiatives, the existing trade is expected to carry on as before. Bilateral trade between India and Canada stood at $8.16 billion in 2022-23. But India’s interest is in Canadian pension funds which invest all over the world in order to get good returns. It is estimated that these funds have so far invested over $45 billion in India, the fourth-largest recipient of Canadian FDI in the world. The top sectors for Canadian pension fund investment in India include infrastructure, renewable energy, technology and financial services.

There is a strong education partnership that is likely to continue. Over three lakh Indian students are studying in Canadian institutions.