India (Commonwealth) _ Government authorities from Canada and India stated that they do not anticipate that the death of a Sikh separatist leader will have any immediate effect on their bilateral trade relations.
In addition to importing items like pharmaceuticals, maritime products, electrical and electronic equipment, pearls, and precious stones, Canada’s main exports to India are minerals, pulses, potash, industrial chemicals, and gemstones.
After Canada accused New Delhi of a larger attempt to target Indian dissidents in Canada and connected India’s high commissioner and other diplomats to the killing of Sikh leader Hardeep Singh Nijjar on Canadian territory on Monday, relations deteriorated.
India refuted the charges, calling them a component of the “political agenda” of Prime Minister Justin Trudeau.
“Trade relations do not instantly worry us. Speaking on condition of anonymity, the source informed reporters, “We do not have a lot of bilateral trade with Canada.
We anticipate that (Canadian) funds will base their investment choices on returns, and India currently provides alluring returns.
According to India’s commerce ministry, bilateral trade between India and Canada reached US$8.4 billion at the conclusion of the most recent fiscal year on March 31, which was slightly higher than the previous year.
When Trudeau initially charged India with being involved in Nijjar’s murder last year, the conflict began. Canadian Trade Minister Mary Ng said in a statement late on Thursday that the business community is confident that our government is still completely dedicated to maintaining the long-standing commercial connections between Canada and India.
To maintain these significant economic ties, we will collaborate closely with all Canadian businesses doing business in India. According to the most recent data, Canada bought about US$324 million worth of goods and exported US$279 million to India in August, an increase of almost 14% from the same month the previous year.
The source stated on Tuesday that they do not expect Canadian funds, which have invested over US$54 billion in India overall, to change their stance due to the ongoing dispute.
According to the Indian foreign ministry, over 1,000 Canadian businesses are actively seeking business in the Indian market, and over 600 Canadian businesses are already in India in industries like banking, financial services, and information technology.
The Bishnoi group, led by Lawrence Bishnoi, who is incarcerated in India, was suspected by Canadian authorities on Monday of employing organized crime to target the country’s South Asian minority. Investigators will look into the matter, Bishnoi’s attorney stated, adding, “Whatever is there, it will be revealed”.
Bilateral ties between Canada and India date back to the 1800s. Both belong to the G20, which is an association of the biggest economies in the world, and are members of the Commonwealth of Nations. The two nations’ bilateral trade was worth $9.36 billion in 2023, with $5.56 billion in Indian exports to Canada and $3.80 billion in Canadian exports to India.
When Indians began working in Canada in the late 19th century, the exodus of Indians to Canada began. Quotas were first set by the Canadian government, but during the 1970s and 1980s, immigration to Canada surged. With an Indian diaspora, India has emerged as one of the main immigration destinations to Canada.
According to Immigration, Refugees and Citizenship Canada, 40 percent of the 800,000 international students studying in Canada in 2022 came from India, making them the country’s largest group of international students. The two nations’ relationship improved when India gained its independence in 1947, and Canada was eager to serve as a link between India and the West. Beginning in 1951, Canadian foreign aid to India expanded significantly under the Colombo Plan.
The Canadian government and business community returned to India as a result of India’s economic liberalization measures in the 1990s. Business agreements and other interests were advanced by the leaders of both nations’ bilateral visits.
The signing of the Nuclear Cooperation Agreement in 2010 and other agreements marked a significant improvement in the nations’ ties in the late 2000s and early 2010s.
Sikh separatists, who support an independent Punjabi Sikh nation-state in India and have connections to the Khalistan movement, have frequently strained relations between Canada and India despite their wide-ranging relationship. Diplomatic tensions erupted in 2023 due to Sikh protests and Canadian claims that Indian operatives were involved in the September 2023 death of suspected pro-Khalistani terrorist Hardeep Singh Nijjar. Both sides cautioned against visiting the other nation and expelled diplomats.