Washington | Amidst unprecedented diplomatic row between India and Canada, Canadian Trade Minister Mary Ng on Tuesday sought to assure the country's business community that she is committed to supporting the well-established commercial ties between the two countries.
“I want to reassure our business community that our government remains fully committed to supporting the well-established commercial ties between Canada and India,” Ng, the minister of export promotion, international trade and economic development, said in a statement.
“Our Trade Commissioner Service will continue to assist and provide resources to Canadian companies operating in India,” she said as India in an unprecedented step not only recalled its high commissioner from Ottawa but also expelled six of the Canadian diplomats from New Delhi.
“Let me be clear: Canada stands firmly by its businesses. We will work closely with all Canadian enterprises engaged with India to ensure these important economic connections remain strong,” she said.
“However, we must consider our economic interests with the need to protect Canadians and uphold the rule of law. We will not tolerate any foreign government threatening, extorting, or harming Canadian citizens on our soil. We urge the government of India to respect the same principles of law and justice that guide our actions,” Ng said.
“The Government of Canada remains open to a dialogue with India and we look forward to continuing our valued relationship,” said the minister.
According to India Brand Equity Foundation, Canada and India achieved a bilateral trade relationship that reached USD 8.27 billion in fiscal year 20203 and USD 5.3 billion during April-November 2023.
In 2022, India was Canada's ninth largest merchandise trading partner in the Indo-Pacific region, the 13th largest merchandise trading partner globally and the 14th largest destination for merchandise exports.
Major exported items from India to Canada include pharmaceutical products (US$ 274.05 million); followed by nuclear reactors, boilers, and parts (US$ 195.46 million), electrical machinery (US$ 160.68 million), and articles of iron and steel (US$ 156.03 million), during April-November 2023.
Major imports from Canada during April-November 2023 include petroleum products (US$ 608.17 million); followed by edible vegetables (US$ 420.60 million) fertilizers (US$ 337.63 million), pearls, precious metals, and stones (US$ 200.80 million), pulp and wastepaper (US$ 192.79 million), and electrical machinery and equipment (US$ 114.84 million).
As of September 2023, Canada was ranked as the 17th largest foreign investor in India, having made cumulative investments amounting to US$ 3.6 billion since April 2000. Canadian investments constitute approximately 0.56% of the total foreign direct investment (FDI) inflow into India.
More than 600 Canadian companies and organizations have established a presence in India. The bilateral commercial relationships between the two countries stand at USD 100 billion, which includes USD 70 billion of Canadian portfolio investment into India.
In 2020, Canadian direct investment in India amounted to USD 2 billion. Canadian portfolio investment in India is estimated to have grown more than 50 percent over the past five years, reaching about USD 27 billion.