Diplomatic relations between India and Canada are currently strained, yet experts suggest that this is unlikely to affect trade and investments, as economic ties are principally driven by commercial considerations.
Both nations exchange complementary products, avoiding rivalry on similar items. This leads Ajay Srivastava, Co-Founder of the Global Trade Research Initiative (GTRI), to remark that “Hence, the trade relationship will continue to grow and not be affected by day-to-day events.”
Recent political occurrences, such as India’s strong objections to extremist activities promoting secessionism and inciting violence in Canada, have resulted in a hiatus in negotiations for a free trade agreement. Despite this, Srivastava observed that these incidents are unlikely to affect the deep-rooted connections between individuals, trade, and economic ties of the two nations.
The trade relationship between India and Canada reached a significant $8.16 billion in 2022-23, with substantial investments from Canadian pension funds across various sectors in India, such as infrastructure, renewable energy, technology, and financial services.
Despite the ongoing diplomatic discord, Sharad Kumar Saraf, Chairman of Technocraft Industries, emphasized that “However, the bilateral trade is entirely driven by commercial considerations. Political turmoil is of a temporary nature and should not be a reason to affect trade relations.”
The robust education partnership between India and Canada, consisting of over 200 educational collaborations and 3,19,000 Indian students enrolled in Canadian institutions, further underscores the mutual benefits and resilient relationship between the two nations.
Srivastava further said that the current situation might not impact the educational relationship, highlighting the essential distinction between diplomatic tensions and the robust economic and educational ties that unite India and Canada.
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