India pauses trade talks with Canada

India has suspended negotiations for a comprehensive free trade agreement (FTA) with Canada, which is not a “strategically” important country for the nation’s commodities’ requirements.

Bilateral merchandise trade between the two countries was a mere $8 billion in the financial year 2023, with exports and imports almost evenly balanced, according to Hindustan Times.

India’s exports to Canada fell year-on-year by over 20 per cent to $1.24 billion in the first four months of the current financial year (FY24). Imports also contracted by 6.39 per cent in the same period at $1.32 billion.

In 2022-2023, India exported merchandise worth $4.11 billion to Canada and imported goods, such as coal, fertiliser, pulses, pulp and aluminium worth $4.17 billion, according to official data.

Canadians have made huge investments in India due to the growth potential of the Indian market and its robust economy.

According to official data, Canadian Pension Funds have cumulatively invested over $55 billion in India and are increasingly viewing India as a favourable destination for investments. More than 600 Canadian companies have a presence in India and more than 1,000 companies are actively pursuing business in the Indian market.

Canada is allowing its land to be used by subversive elements against India. However, since India’s imports from the country can easily be substituted from any other friendlier supplier in the country’s national interest, New Delhi does not have to solely rely on Canada for key commodities, the officials who asked not to be named said.

In general, India exports pharmaceuticals, iron products, telecom equipment, garments, marine products, auto components, iron and steel to Canada.