By Ramaa Sakhalkar
Canadian Prime Minister Justin Trudeau accused Indian government agents of having linkages in the killing of a Khalistani terrorist Hardeep Singh Nijjar. Hours after Canada expelled a top Indian diplomat over Khalistani terrorist Hardeep Singh Nijjar's killing, India asked a senior Canadian diplomat to leave the country. According to Invest India, Canada is the 18th largest foreign investor in India with an overall investment of about $3,306 million from April 2000 to March 2023. Thus, Canadian investment represented about 0.5 per cent of the total FDI (foreign direct investment) inflows into India.
India was Canada's ninth-largest trading partner in 2022. Services and infrastructure together accounted for 40.63 per cent of the total FDI investments from Canada to India. Over 600 Canadian companies have a presence in India and over 1,000 Canadian companies are actively pursuing business in the Indian market, including Air Canada (RL Group ), Thomson Reuters India etc. According to a PTI report, India's exports to Canada include pharmaceuticals, gems and jewellery, textiles, and machinery, while Canada's exports to India include pulses, timber, pulp and paper, and mining products. Fresh tensions between India and Canada are unlikely to impact trade and investments between the two countries as economic ties are driven by commercial considerations.
Experts point out that India and Canada do not compete on similar products but trade in complementary products so trade relationships may not be affected by these events. In 2022, international students contributed $22.3 billion to the Canadian economy, of which approximately $10.2 billion came from Indian students. They also supported over 170,000 jobs in Canada in 2022, of an overall 370,000 jobs supported by international students.
Canada is likely to suffer huge loss in terms of human resource in case the tensions between the two nations prolong Besides, India is the 5th largest economy today, with the world's youngest population. Having just passed on a legacy of successful G20 presidency to Brazil, it is witnessing impeccable growth as an economy. Besides, eradicating anti-national and terrorist activities like the Khalistan movement is of utmost importance to protect national interests for both economies. It will be in the best interests of Canada to comply with its counterpart and strengthen not just it's economic but also social ties with India.
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