Fallout of Trudeau’s Trade Visit to India: Business Agreements Worth $1B Signed between Indian & Canadian Firms

The ongoing trade visit to India by the incumbent Canadian Premier Justin Trudeau seems to have fulfilled its object of boosting the Indo-Canadian trade relations across fields what with as many as 66 new contracts–valued at $1 billion in total–being signed between the companies of the involved nation in a deal likely to generate 5,800 jobs in the Maple Leaf Country.

The declaration was made by Trudeau, who is on trip to the country presently, and has covered several parts of the nation, including Mumbai, Agra, and Punjab, etc.

As per the available information, majority of the employment opportunities will come from $250 million in fresh investments made by the different firms from India in the Maple Leaf Country. Not to be left behind, the Canadian organizations will make an investment of $750 million in India. The biggest share of that Canadian investment is Brookfield’s purchase of a Mumbai office complex, presently maintained by a bankrupt Indian organization.

Business Agreements Worth $1B Signed between Indian & Canadian Firms
Business Agreements Worth $1B Signed between Indian & Canadian Firms

Talking about the progress made in the Indi-Canadian business relations lately, a concerned person from Canada, reportedly, stated that people of the Maple Leaf Country are aware of the rise of Asia and that it makes sense for Canada to pay more attention to India.

Dwelling on the shifting India perspectives about Canada in India, he reportedly also pointed-out that in India, for a very long time, the Maple Leaf Country was seen as a nation located very far away, and it was only about natural resources and produces. That opinion is changing though now.

The top Indian Industrialist Kumar Mangalam Birla—who, reportedly, had a private meeting with the Canadian PM–said that the Birla Group has many grand plans in Canada for three businesses, namely, fibre, carbon black and rolled aluminum goods. Praising Canada for offering a highly business-friendly environment to the investors and businessmen from abroad, he added that the Birla Group is exceedingly happy investors in the overseas hotspot. He continued that the governments at both the federal and provincial levels in the Maple Leaf Country have been very co-operative.

Weak Trade Growth Hitherto

Despite all this, the Canadian trade with India has not really picked up the way it should have been. Allegedly, the previous Harper administration in 2012 had set itself a target of boosting two-way trade to $15 billion by 2015.

That number was optimistic even as Canada has failed to reach it so far, and the trade between the two nations is still trapped at just more than $8 billion yearly.

India’s alleged protectionist dispositions are still alive, as seen in recent times when it put tariffs in the 40 to 50% range on the Canadian dried peas & chickpeas. (Pulses are the Maple Leaf Country’s most vital export to India.)

Getting those charges either removed or cut-down are a key goal of Trudeau’s India trip, even as it remains to be seen if he succeeds in it.

India Zooms Forward

The alleged incompetence of India’s state sector and bureaucracy has been behind preventing it from fulfilling its growth possibility even as for several years it trailed China in yearly development.

But, in recent years, India has sped forward with a vibrant energy even as China has slowed somewhat. As per a report, India is likely to post 7% growth this year. That level of growth creates both fresh demand for merchandises and services from other nations and additional money with which to purchase them.

India wants energy security and Canada may proffer the same. As discussed before, trade is one region where the two nations are yet to touch the potential that they ought to.

The movement of Indian migrants to Canada, the second source nation for fresh immigrants, is leading to better awareness of Canada here in this part of the world. And that in turn opens the door wide open to the formation of cultural and educational relations that Ottawa is allegedly making efforts to nurture on the ongoing tour even as this is main reason why the Canadian PM had a meeting with three of the biggest movie stars of India on the same day he met the top Indian CEOs.

Way back during 2011, the administrations of Canada and Ontario tempted Bollywood to hold its version of the Oscars in Toronto. Since then, several hit Bollywood movies have, reportedly, been shot in Canada and this is one drift the present Canadian administration is very keen to nurture, for obvious reasons.

Student Figures Jumping

The gains of Bollywood are double. The clear gain is the income for Canada. While the film production houses from India spend money on staff & services in Canada, hiring people, such as cameramen and caterers; the comparatively less noticeable benefit is exposure. When people back in India see these films, it remarkably boosts the appeal of the Maple Leaf Country as an attractive product and a place to be at.

The rising awareness of Canada in India has already resulted in the ballooning of interest in the universities and colleges of Canada. That trend increased suddenly post the election of Donald Trump in the US which was followed by an extraordinary 6% drop in global guests to the US, even as international travel keeps on jumping in nearly every other market.

The Canadian Consulate in India reported an increase of 100% in the figure of the Student Visas provided to the citizens of India from 2016 to 2017.

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