Instead of resolving the India and Canada issue, it is getting more complicated. The issue that started with Sikhs is now visible on the economy. There is investment worth billions between India and Canada in commodities and education sector. Now the effect can be seen on these.
Tension has increased between India and Canada since last years. Due to which after the political fight, now the economic war has started. Which can affect everything from commodity to education sector. In fact, instead of resolving the India and Canada issue, it is becoming more complicated. The issue that started with Sikhs is now visible on the economy. There is investment worth billions between India and Canada in commodities and education sector. Now the effect can be seen. Now in such a situation, the education sector can be most affected. Many students from India go to Canada for studies every year. In such a situation, this political bitterness can attack the education sector. Let us know what things are traded between India and Canada and what effect this will have on India.
India is Canada’s 10th largest trading partner.
India will become Canada’s 10th largest trading partner by 2022. India exported $4.10 billion worth of goods to Canada in fiscal 2022-23, compared with $4.05 billion in 2022-23. A year ago, India exported $3.76 billion to Canada in 2021-22. where net inflows in 2021-22 are $3.13 billion. Bilateral trade between the two countries was $7 billion in 2021-22, rising to $8.16 billion in 2022-23.
Canada’s investment in India.
Not only that, but the easy trade between India and Canada has also led India to invest heavily. Canadian pension funds have invested $55 billion in India. Whereas Canada has made direct investment of 4.07 billion dollars in India since 2000. At least 600 Canadian companies are currently operating in India, while 1000 more companies are in the queue to enter India. If we talk about India, Indian IT companies have a big business in Canada. Apart from this, Indian companies are active in software, natural resources and banking sectors.
At the same time, Canada’s largest pension manager CPPIB had invested $21 billion in India a year ago. This 2.7% stake worth Rs 96 billion ($ 1.2 billion) has been invested by CPPIB in Mumbai’s Kotak Mahindra Bank Limited. According to the fund disclosure document, it is one of about 70 publicly traded Indian companies in which Canada has invested.
How will the education sector be affected?
Canada remains the first choice for studies of Indian students. There are about 40 percent foreign students in Canada. The tension between Canada and India is continuously increasing. Meanwhile, Indian students studying in Canada and their parents have started getting worried. Many students from Punjab go to Canada to study. In such a situation, their future is also under threat. At present, about two lakh students of Punjab have gone to Canada on study visa for studies. In such a situation, the student has to spend around Rs 25 lakh in fees. However, if tensions between the two countries continue to increase, Canada may tighten the rules for entry into the country. This also includes canceling their visa and deporting them.
What does Canada buy from India?
If we talk about buying goods between India and Canada, then Canada buys jewellery, precious stones, pharma products, readymade garments, organic chemicals, light engineering goods and iron and steel products from India.
What does India take from Canada?
Apart from this, if we talk about India’s purchases, India buys pulses, newsprint, wood pulp, asbestos, potash, iron scrap, minerals and industrial from Canada. India purchases the most pulses from Canada. India consumes 230 lakh tonnes of pulses. At the same time, its yield is less than this. Canada is the largest producer of peas.