India And Canada Expect No Impact On Trade Ties From Public Quarrel

Photo: Reuters/Christinne Muschi

NEW DELHI (REUTERS) – India and Canada do not see diplomatic fallout over the murder of a Sikh separatist leader having any immediate impact on bilateral trade ties, government officials from the two countries said.

Canada exports primarily minerals, pulses, potash, industrial chemicals and gemstones to India and imports goods such as pharmaceuticals, marine products, electrical and electronic equipment, pearls and precious stones.

“We are not immediately concerned about trade ties. Our bilateral trade with Canada is not very large,” an Indian officials told reporters, speaking on condition of anonymity.

“We expect (Canadian) funds to make investment decisions based on returns and India offers attractive returns at the moment.”

Bilateral trade between India and Canada amounted to $8.4 billion at the end of the last fiscal year on March 31, marginally up on the previous year, according to India’s trade ministry.

“I want to reassure our business community that our government remains fully committed to supporting the well-established commercial ties between Canada and India,” Canadian trade minister Mary Ng said in a statement late on October 14.

“We will work closely with all Canadian enterprises engaged with India to ensure these important economic connections remain strong.”

In August, Canada exported $279 million worth of goods to India and imported around $324 million worth, a jump of around 14% in both categories from August last year, latest data showed.

Canadian funds, which have cumulatively invested over $54 billion in India, are also not expected to change their stance because of the ongoing row, the source added on October 15.

More than 600 Canadian companies have a presence in India in sectors including IT, banking, and financial services, and more than 1,000 companies are actively pursuing business in the Indian market, according to the Indian foreign ministry.