Reuters: NEW DELHI -As tensions build following Prime Minister Justin Trudeau’s statement that police are looking into “credible allegations” tying New Delhi’s operatives to the death of Sikh separatist leader Hardeep Singh Nijjar, trade discussions between India and Canada have been hampered.
On Tuesday, New Delhi called the accusations “absurd” and urged Canada to take action against any anti-Indian groups present on its soil.
What’s at risk for both nations is listed below:
WHAT EFFECT DO TRADE TALKS HAVE?
Just three months after both countries declared they hoped to sign an initial agreement this year, Canada said this month that discussions on the planned treaty with India had been put on hold.
According to industry projections, the Comprehensive Economic Partnership Agreement (CEPA) between Canada and India may increase bilateral commerce by up to $6.5 billion, resulting in a $3.8 billion to $5.9 billion increase in Canada’s GDP by 2035.
WHAT ARE THE KEY COMMERCIAL ITEMS?
Consistent growth has led to an increase in goods commerce to $8 billion in 2022, with $4 billion in exports from India to Canada and $4 billion in imports from Canada.
Canadian farmers have profited from India’s rising demand for imported lentils, and Indian software and pharmaceutical industries have increased their market share in Canada.
India exports consumer goods, clothing, engineering products including car components, aircraft equipment, and electrical items, whereas Canada’s main imports include energy products like coal, coke, and briquettes as well as fertilizers.
WHICH POSITION IS THE INVESTMENT?
Canadian portfolio investors have invested billions of dollars in Indian debt and equity markets, ranking Canada as the 17th largest foreign investor in India with more than $3.6 billion invested since 2000.
By the conclusion of its most recent fiscal year in March 2023, the Canadian Pension Plan (CPP) will have boosted its investment in Indian markets to roughly $15 billion, including investments in real estate, renewable energy, and the banking industry.
HOW HAVE COMPANIES BEEN ADVANTAGED?
While over 30 Indian firms, including infotech giants TCS, Infosys, and Wipro, have invested billions of dollars in Canada and generated thousands of jobs, over 600 Canadian businesses, including Bombardier and SNC Lavalin, are well-represented in India.
WHAT ARE INDIAN STUDENTS’ RESPONSIBILITIES IN CANADA?
India has been the top source country for foreign students in Canada since 2018.
According to the Canadian Bureau of International Education, their number increased by 47% to close to 320,000 in 2022, making up roughly 40% of all international students. This aids universities and colleges in providing domestic students with subsidized education.
WHAT CONSEQUENCES DO SIKHS FACE?
Since many Sikh families in Punjab, a Sikh-majority state in India, have relatives in Canada who send millions of dollars back home, many observers believe the deteriorating relations might harm the economic interests of these families.
According to the country’s 2021 census, the proportion of Sikhs in Canada has increased by more than doubling in 20 years, reaching 2.1%, as many Sikhs have migrated from India in quest of better education and employment.