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A new phase is about to begin in the economic relations between India and Canada. Canada’s International Trade Minister is coming on a much-awaited official visit to India from 12 to 17 October. After the recent diplomatic tensions, this visit is being considered very important in bringing the relations between the two countries back on track and strengthening the economic partnership. In this six-day high-level visit, not only will there be serious talks towards finalizing the proposed Comprehensive Economic Partnership Agreement (CEPA) between the two countries, but a blueprint for new commercial coordination between the industries of the two countries will also be prepared. This tour will not be limited only to the corridors of Delhi, but the Canadian delegation will also establish direct dialogue with Indian industrialists, investors and policy makers in the country’s financial capital Mumbai and tech hub Bengaluru. The visit, accompanied by a nearly 300-member Canadian business delegation, is the largest commercial mission from Canada to India in the last three decades. The focus of this visit includes global issues like energy security, modern technology, food security and maintaining supply chain stability.
The long pending bilateral free trade agreement between India and Canada now appears to be reaching its final phase. Both countries want to reduce trade barriers and high customs duties to create a balanced framework that is beneficial to both economies. Legal, technical and policy aspects of this agreement will be discussed face to face in the meeting with Commerce and Industry Minister Piyush Goyal in New Delhi. The main objective of this agreement is not only to facilitate the import-export of goods, but also to give a new impetus to the service sector of both the countries. The Canadian market presents a vast opportunity for Indian IT professionals, fintech developers, financial analysts and engineers, while India’s huge domestic demand and rapid economic growth make it an attractive destination for Canadian companies. With the implementation of the agreement, Indian textiles, gems, jewellery, leather, engineering goods and agricultural products will get direct access to the Canadian market at zero or very low duty. With this, Canadian potash, pulses, wood products and modern technical equipment will be available in the Indian market at competitive rates. It is clear that the commercial priorities of both the countries are to keep trade aside and move forward on the path of progress despite geopolitical fluctuations.
The geographical scope of this journey has been decided very strategically. The tour will begin in Mumbai with an interaction with the country’s top corporate leaders, major financial institutions and pension fund managers. Canadian pension funds such as CedarPIB and CDPQ have already invested billions of dollars in India’s infrastructure, real estate, logistics and renewable energy sectors. The meetings in Mumbai aim to expand these long-term investments and explore new avenues for Canadian capital into India’s National Infrastructure Pipeline. After this, the delegation will move towards Bengaluru, where there will be discussions on technical partnerships with Indian innovators working on Artificial Intelligence, Quantum Computing, Semiconductor and Space-Tech. Canada’s tech ecosystem has grown rapidly in cities like Toronto and Vancouver, and this collaboration with Bengaluru will directly benefit startups from both countries through joint ventures, cross-border funding and technology exchange. This partnership is not limited to just investment, but it will create a strong platform for joint research and development of new technologies of the future.
Critical minerals have become the backbone of the clean energy transition and digital revolution in the modern world. Canada is one of the richest countries in the world in rare minerals such as lithium, cobalt, nickel, graphite and uranium. India wants to establish a secure and reliable supply chain of these minerals to support its ambitious electric vehicle policy, battery storage targets and solar energy initiatives. During this visit, there is a strong possibility of forming a concrete framework on Critical Minerals Partnership between the two countries. The Canadian Commerce Minister’s team will consider long-term agreements with Indian public and private sector companies in mining, refining and value-chain creation. Apart from this, there will also be talks on accelerating joint projects in the field of green hydrogen, biofuel and carbon capture technology. This strategic coordination between India and Canada, aimed at reducing excessive dependence on any one country in the global supply chain, will provide new strength to the economic security of both the countries in the Indo-Pacific region.
Apart from trade and economy, a very sensitive and humanitarian aspect of this visit is related to Indian expatriates, students and skilled workers. The Indian community living in Canada acts as a strong bridge between the two countries. There is every hope that a positive approach will be adopted during this visit on the concerns that have arisen in the recent past regarding visa processing, student permits and travel ease due to diplomatic tensions. Fast-tracking business visas for ease of doing business, facilitating movement of professionals and facilitating academic collaboration are integral to the trade priorities of both sides. Indian skilled talent remains in demand across many sectors in Canada, and a transparent, stable policy environment will serve to restore trust between the two countries.