Canada and India A Renewed Impetus for Trade

Since 1991, India has initiated economic reforms with far-reaching implications on its traditional model of development and its integration into the world economy. These gradual changes have strongly contributed to the progressive modernization of the business environment, thus galvanizing the entrepreneurial spirit which characterizes India’s private sector. The trade liberalization process initiated by the World Trade Organization is a strong motivational factor for Canadian and Indian businesses to seek out new partnerships to build upon their respective complementarities to succeed internationally. These transformations have not gone unnoticed neither by large Canadian businesses nor the small Canadian entrepreneurs who are increasingly engaged in trade with India. In fact, from 1999 to 2002, the total numbers of Canadian export establishments dealing with India have increased from 1000 to more than 1600.

New India’s aspiration to combine its talent and resources to achieve growth is changing the landscape of the country, by leveraging the private sector as one of the vectors of development and is contributing to its new image as an investment destination.

To fully realize its potential, the country is engaged in the modernization of its infrastructure, broadly defined: telecom; energy (power generation, transportation and distribution; oil and gas); transportation (ports, airports, roads, railways, aerospace). While these sectors are vital to the modern development of India, they have been key to Canada’s existence for many years, namely because of the climate and geography. This unique expertise developed by Canada can be effectively combined with talent from India to customize solutions, which are well adapted to the challenges, which need to be taken to allow the country to further develop its manufacturing base, expand its service sector activities; modernize its agri-food sector; and play a leadership role in the Asian and world economic landscape.

While India is transforming itself through the modernization of the public sector, the emergence of a middleclass and a growing number of graduates with good levels of higher education, Canada is also changing as its becomes more global in its outlook and closer to Asia in search for partnerships.

India and Canada share in many ways a common legacy but more importantly have the potential to capitalize on common endeavours.

News Flash

India and Canada in World’s Top Ten Largest Economies

India has become the fourth largest economy in the world after the US, China and Japan, notes The Washington Times in its year-end review on 28 December 2004. According to the report, the US accounts for 21.1 percent of the world GDP, China 12.6, Japan 7.0 and India 5.7 percent. Canada also achieved a top ten rating with 1.9 percent of world GDP.

(Edited from report by PTI, Washington)

Roadmap for FDI in Private Banks to be Announced

Finance Minister, P. Chidambaram has hinted that the roadmap for allowing foreign banks to pick up to 74 percent stake in Indian private sector banks would be announced within a few days. The Minister, in the first week of December announced that the roadmap for banking sector reforms including the hike in FDI in from 49 to 74 percent would be announce by year-end. “The tsunami relief efforts have delayed the efforts, so you can add 10 days to the current month,” he told reporters.

Hindu Business Line – 06 Jan ‘05