In 2016, trade between Canada and India was worth more than $8 billion in both directions. India`s fast-growing economy offers huge opportunities for Canadian businesses in emerging sectors such as transportation infrastructure, life sciences, clean energy technologies (for example). B the integration of renewable energy/smart grids, trapping, carbon use and storage, energy efficiency) and renewable energy, as well as in traditional sectors such as infrastructure development, natural resources, defence and security, value-added food, mining and oil and gas. Scientific and technological cooperation, innovation and educational links are also important areas in which the Canadian economy offers opportunities. Patel, who is of Gujarati origin and has been ambassador to India for nearly five years, said that commercial growth has been robust over the past five years. Canada-India Trade and Investment Agreements: Expanding trade and investment with large, fast-growing markets, including India, is a priority for the Canadian government. India`s GDP growth, expected to reach 7.2% in 2017, is one of the highest in the world. “Countries will have problems with each other, but friends can work on them, and this is seen in the form of relations between our two countries,” he said. Canada and India have concluded their ninth round of negotiations under a comprehensive free trade agreement between Canada and India. Negotiations have focused on a wide range of issues related to goods and services and, since they were completed, both sides have committed to moving the discussions forward towards a final agreement. Canada and India are conducting bilateral negotiations for both a Comprehensive Economic Partnership Agreement and a Foreign Investment Promotion and Protection Agreement (FIPA). Canada and India regularly conduct ministerial dialogues on trade, investment and energy. There is currently a food tariff policy and non-tariff barriers in India that limit trade and growth for Canadian agri-food producers.
For example, India currently applies a 30 per cent tariff to all Canadian lentil exports. According to experts, the removal of tariffs on lentil products alone could potentially lead to a 147 per cent increase in exports over five years. While exports to India have increased over the past 10 years, exports to India account for less than 1% of Canada`s trade. In addition, the Indian population remains highly price sensitive. As a result, trade volumes with India fluctuate considerably each year. Implementation and ratification of the India-Canada Trade Agreement has the potential to increase GDP by $6 billion and generate exports of up to 47 per cent (according to DFATD). For more information, see trade and investment agreements. While trade relations between the two countries will be key, Canada also wants to focus on relations between the two countries during years of security, defence, culture and interhumanism, he said.
One of the main problems between the two nations was the Khalistan extremist groups, which dominated during Canadian President Justin Trudeau`s visit to India last year. Canada`s High Commissioner for India, Nadir Patel, said the chances of a quick conclusion to his country`s trade agreement with India were bleak, but trade was recovering quickly.