Canada and India: Strengthening Economic Ties
Scheduled for Early March Canada's Prime Minister Mark Carney is set to visit India in early March, with plans to spend March 1-2 in New Delhi. This visit is part of a broader strategy to enhance trade relations between the two nations.
Expanding Trade Horizons
The trip comes at a crucial time as Canada seeks to diversify its trade partnerships beyond the United States. Trade tensions with the U.S., including tariffs imposed by President Donald Trump, have prompted Canada to explore new markets. Strengthening ties with India is a key part of this strategy.
Mending Diplomatic Relations
Carney's visit also aims to repair some diplomatic damage. The previous Canadian Prime Minister, Justin Trudeau, had accused India of involvement in the killing of a Sikh separatist leader in 2023. India has strongly denied these claims. Carney's visit is seen as an effort to move past this controversy and focus on mutual economic benefits.
Trade Pact Discussions
Carney and Indian Prime Minister Narendra Modi have already discussed a trade pact. They agreed in November, during a G20 meeting, to start talks on a comprehensive economic partnership. Their goal is to double bilateral trade to $50 billion by 2030, showcasing the seriousness of both countries in strengthening their economic relationship.
Provincial Involvement
Canada's federal government has been working closely with provinces like Ontario to prepare for these talks. Ontario's Minister of Economic Development, Job Creation, and Trade, Victor Fedeli, has been involved in these efforts. Fedeli is also visiting New Delhi to participate in a global AI summit and to encourage Indian companies to invest in Ontario.
Growing Trade Relations
Trade between Ontario and India has grown significantly since 2018, with a 60% increase. Indian companies like HCL, Paytm, and Tata Consultancy have established a strong presence in Ontario. This growth highlights the potential for even greater economic cooperation between the two countries.
