India Canada Trade
India Canada Trade Agreement
Introduction
India established diplomatic relations with Canada in 1947 and has established their rapport based on shared values of democracy, pluralism, expanding economic engagement, regular high-level interactions, and long-standing people-to-people ties. Both countries have been working to enhance bilateral cooperation in several areas of mutual importance.
India-Canada Trade
- In 2021, India was Canada’s 6th-largest merchandise trading partner in the Indo-Pacific region, the 13th-largest merchandise trading partner globally, and the 14th-largest destination for merchandise exports.
- India is a key partner as Canada strengthens its economic links to the Indo-Pacific under a new, comprehensive strategy for the region
- Bilateral goods trade in 2021 reached US$ 6.29 billion, up 12% as compared to the previous year. Total bilateral trade including goods and services crossed US$ 11 billion.
- It is estimated that India-Canada Comprehensive Economic Partnership Agreement (CEPA) between Canada and India would boost bilateral trade by US$ 4.4-6.5 billion (C$ 6-8.8 billion) and yield a GDP gain of US$ 3.8-5.9 billion (C$ 5.1-8 billion) for Canada by 2035.
Major exported items from India to Canada with amount & quantity
- India exported 4,504 commodities to Canada during April-October 2022.
- India’s export to Canada stood at US$ 2.8 billion during April-November 2022.
- Major exported items from India to Canada include drug formulations and biologicals (US$ 278 million); followed by products of iron and steel (US$ 218 million); articles of iron and steel (US$ 172 million) during April-November 2022.
Major imported items by India from Canada with amount & quantity
- India imported 1,629 commodities from Canada during April-October 2022.
- Imports from Canada to India were valued at US$ 2.6 billion during April-November 2022.
- Major India's imports from Canada include coal, coke and briquettes etc. (US$ 822 million); followed by fertilizers manufactured (US$ 572 million) etc. during April-November 2022.
Recent Trends and Developments
- India and Canada decided to consider the interim agreement and the 5th ministerial dialogue on trade and investment was held on March 11, 2022. The Ministers agreed to formally re-launch the negotiations for India-Canada Comprehensive Economic Partnership Agreement (CEPA) and also consider an Interim Agreement or Early Progress Trade Agreement (EPTA) that could bring early commercial gains to both countries.
- The Early Progress Trade Agreement (EPTA) between India and Canada is likely to be clinched in the second half of 2023
- India and Canada have been in negotiations to finalize a Foreign Investment Promotion and Protection Agreement (FIPA).
- Two MoUs were renewed at the 7th India-Canada Joint Science and Technology Cooperation Committee (JSTCC) meeting that took place in Ottawa, setting priorities for the next period in a variety of innovative fields. The focus areas of the collaboration include national missions, quantum computing, artificial intelligence (AI), and cyber-physical systems, among others. Many Indian students studying in Canadian universities will benefit from the collaboration.
- Canada has agreed to examine the request for Conformity Verification Body (CVB) status to APEDA (Agricultural and Processed Food Products Export Development Authority) for hassle-free export of Indian organic products.
- The bilateral relationship between India and Canada could get a major boost next year, with as many as eight Canadian cabinet ministers and Prime Minister Justin Trudeau expected to visit to participate in G20 events.
Economic Relations
More than 600 Canadian companies and organizations have established a presence in India. Hundreds more are actively pursuing business opportunities there. The bilateral commercial relationships between the two countries stand at US$100 billion, which includes US$70 billion of Canadian portfolio investment into India. In 2020, Canadian direct investment in India amounted to US$2 billion. Canadian portfolio investment in India is estimated to have grown more than 50% over the past five years, reaching about US$27 billion.
As of March 2021, Canada invested nearly US$ 24 million in 2018-2019 to support 75 projects in India via Grand Challenges Canada. The main programming sector of the Partnerships for Development Innovation Branch is maternal, newborn and child health, which includes support to early childhood development.
IDRC continues to have an active presence in India with projects focusing on the links between climate change and migration; the reduction of violence against vulnerable populations; women’s rights, security and access to justice; economic opportunities for Indian workers, especially women; and improving food security. Since 1974, IDRC has programmed US$ 143 million in India.
Conclusion
Canada and India have longstanding bilateral relations built upon shared traditions of democracy, pluralism, and strong interpersonal connections, and their relations are moving on a positive trajectory. With the establishment of the Ministerial Dialogue on Trade and Investment, bilateral trade relations are expected to strengthen further in the coming times. The growing economy of India offers immense opportunities to the consumer population of Canada. The G-7 country has an advanced and resource-rich economy which will be a good relationship for India to uphold.
Contacts
- High Commission of India, Ottawa, Ontario, Canada
Mr. Sanjay Kumar Verma (High Commissioner)
Mr. Rajeev Madaan (Counsellor (Pol, Com & PIC))
Email: com.ottawa@mea.gov.in - High Commission of Canada to India
Address: 7/8, Shantipath, Chanakyapuri, New Delhi 110021
Telephone: +91 11 4178 2000
Email: delhi@international.gc.ca
Partners
