Why Canada?

For two large $1.5 trillion economies, the trade and investment links between India and Canada are surprisingly small. Annual trade in each direction is just over $2-billion; investment flows have been modest until recently; and science and technology links are only beginning to grow since the signing of an agreement in 2005.

In 2009, Canada and India announced discussions for a comprehensive economic partnership agreement (CEPA). CEPA is expected to eliminate tariffs, open up service opportunities, and establish investment rules. Initiatives like this are likely to help trade totals return to form with renewed focus on the corridor.

Canada is an ideal place for Indian companies to look to do business and raise capital. In addition to a large Indian Diaspora (more than one million Canadian are of Indian descent), the Canadian and Indian shared experiences run deep, rooted in parliamentary democracies, federal systems of government, common legal codes, Commonwealth heritage, English as a national language, and pluralistic societies.

In addition, both Canada and India's financial systems avoided the worst of the banking woes experienced by U.S. and European financial institutions. Canada was the only G8 nation not to endure a bank failure. Secure and stable economies and banking systems are trademarks of both countries with good fiscal and monetary policies.