India’s presidency recently concluded at the G-20 meeting. Canadian Prime Minister Justin Trudeau came to India along with other heads of state to attend the meeting. Modi and Trudeau are seen standing together at the Bharat Mandapam and shaking hands. But after that lightning! A complete 360-degree angle has now begun to stress the deterioration of relations between India and Canada in diplomatic circles. Prime Minister Justin Trudeau is now asking Canada’s allies to stand by the Indian government after it directly blamed the Indian government for the killing of Canadian Sikh leader Hardeep Singh Nirjhar. This preferential treatment between the two countries has had an impact on India and Canada. The business community is particularly concerned. 40 crore investment in the problem.
Several large Indian companies have investments in Canada. Besides, several Canadian companies have business in India as well. As a result, the extreme dispute at the diplomatic level of the two countries is going to affect the trade of both countries. This huge investment has raised concerns in both countries. Recently, the Confederation of Indian Industry published a report claiming that Indian contribution to the Canadian economy has increased. It is said that the presence of Indian industry in Canada is steadily increasing. According to the report, 30 Indian companies are currently doing business in Canada, with a total investment of around Tk 40,446 crore. Investments are likely to increase further. The circumstances that have arisen have poured all the water on that hope. About 17,000 people are employed as a result of Indian companies doing business in Canada.
The way trade between the two countries was progressing, the prospects for future development were even stronger. In 2022, the trade between the two countries increased to 8 billion dollars. Exports to Canada were $8 billion and imports were $8 billion. Fertilizers for agricultural sector, various fuel materials like coal, coke and briquettes etc. come to India mainly from Canada. On the other hand, India exports various apparel and engineering products to Canada.
IT companies are concerned about this alarming situation in the two countries. Because Indian IT companies have invested heavily in Canada. These include giant companies like Wipro, Infosys, Tata Consultancy Services. As a result, companies have no choice but to wait and see. As of 2022, India was Canada’s tenth largest trading partner.
While Nasscom, the apex body of the IT industry, said, “There is no immediate cause for concern”, IT companies, including startups, are keeping a cautious eye on everything. Amidst this tension, India has suspended visa services for Canadian citizens. Visa services for Canadians will remain suspended until further notice, the Indian Visa Application Center said in a statement on Thursday. Industry experts also expressed concern that the current standoff could delay new business deals and professionalization between the two countries. Because a ‘favorable political climate’ agreement is essential for business growth.
