Prime Minister Stephen Harper outlined the initiatives the government has undertaken to improve trade relations with India, an emerging economic superpower and the world's most populous democracy. Speaking at the inaugural gala dinner of the Canada India Foundation, the Prime Minister spoke of India's growing importance to the Canadian economy.

Prime Minister Harper said that Canada simply could not afford to miss out on India's phenomenal economic growth. That's why the Canadian government is putting so much emphasis on improving trade and investment between the countries.

In his speech, the Prime Minister announced that Canada would open two new trade offices in India. The offices would be in Hyderabad, gateway to southern India's Information-Communications Technology hub, and Kolkata, the main business, commercial, financial, and transportation centre of eastern India. To further enhance trade and investment ties, the government would also post additional commissioners at the established offices in Mumbai and Delhi.

These new trade offices would expand Canada's reach in India beyond our traditional focus on the north. India's boom is not just happening in the northern region, and Canada needs to be where all the action is, according to Prime Minister Harper.

The Prime Minister concluded his speech by highlighting the connection between the freer flow of goods and people. A decade of inaction has left Canada with the largest immigration backlog in the world. So the government tabled amendments to the already existing Immigration and Refugee Protection Act aimed at reducing the application backlog and shortening wait times for newcomers. If passed, the reforms would dramatically reduce Canada's immigration backlog and provide the skilled workers needed to prevent critical labour force shortages.

Canadian immigration reforms would get skilled workers into the country earlier, help families get reunited sooner, provide the Canadian economy with the human capital it needed to maximize its enormous potential, and continue to enrich Canada with the cultural influences of newcomers from the four corners of the earth opined Prime Minister Harper.

Courtesy: Prime Minister's Web Site

Potential for India Canada commercial ties

Canada-India Facts

In 2006, India became Canada's 14th largest export market, up from 18th the previous year. That year, direct investment between the two countries reached $528 million. Canada's top exports to India in 2006 were cereals, paper and paperboard, and ores, slag and ash. Much of the 2006 export growth was propelled by a sharp increase in wheat sales, totalling over $240 million. Canada's top imports from India in 2006 consisted primarily of knit apparel, precious stones and metals, and organic chemicals.

India offers many opportunities for Canadian firms, including in the areas of manufacturing, construction, and engineering. In 2005, Canada and India signed an Agreement for Scientific and Technological Cooperation which will enhance future trade and investment through the commercialization of research.

Emerging and growing markets

After reinventing itself in the 1990s by instituting wide-ranging economic reforms, India today is flourishing. An entrepreneurial spirit has emerged, and the economy is growing at a blistering pace.

The Government of Canada considers India to be a priority market, and Canada is all bent on strengthening Indo-Canadian relationship. Canadian companies have much to offer India, particularly in construction, architecture, design, engineering and telecommunications. It's no longer simply a case of India catching up to the world; it's becoming a case of the world catching up to India.

In March 2007, Canada led a trade mission to India to increase two-way investment, stimulate exports and focus on promoting Canada's world-class infrastructure capabilities to a market many say is unable to keep up with its economic ambitions. In June 2007, the two countries concluded negotiations on a Foreign Investment Promotion and Protection Agreement (FIPA), providing added security and predictability to the legal framework for a two-way investment. The FIPA followed the signing of a Science and Technology Agreement in 2005 aimed at ensuring that the private sectors in India and Canada mutually benefit from greater cooperation on the commercial results of strategic research.

The infrastructure gap is taking a heavy toll on the country, stalling growth by one to two percent. As a result, India is investing some $200 billion in infrastructure over the next 10 years which can be viewed as good news for Canada. India's need for effective transportation, power generation, environmental protection and urban planning would grow, and that's where Canada could help.

In 2006, Canadian exports to India reached $1.7 billion-a 55 percent increase over 2005. Canadian imports from India reached $1.9 billion-a 7.4 percent increase over 2005. Two-way foreign direct investment increased by more than 17 percent to $528 million. Stronger growth is also anticipated in the coming years in light of the vibrant relationship developing between the business communities of both countries. These increases show that Canadian companies are making inroads into the Indian market.

Sectors of opportunity for Canadian business

International Trade Canada and the Trade Commissioner Service have identified several sectors of opportunity for Canadian businesses including: Agricultural Technology and Equipment; Agriculture, Food and Beverages; Building Products; Electric Power Equipment and Services; Environmental Industries; Health Industries; Information and Communications Technologies; Metals, Minerals and Related Equipment, Services and Technology; Oil and Gas Equipment and Services; Rail and Urban Transit; and Service Industries and Capital Projects.

Courtesy: International Trade Canada's Trade Commissioner Service