Nilesh Kanani

According to Statistics Canada, bilateral merchandise trade between Canada and India in 2010 totalled approximately C$4.2 billion, an increase of 46.6 percent since 2005. Canada - India Bilateral Trade 2005 2010

[Figures in billion Canadian Dollars]

2005 CANADAS IMPORTS FROM INDIA CANADAS EXPORTS TO INDIA TOTAL 1.79 2006 1.92 2007 1.98 2008 2.2 2009 2.0 2010 2.12

1.09

1.68

1.79

2.42

2.14

2.15

2.87

3.59

3.77

4.62

4.14

4.27

INDIA EXPORTS

INDIA IMPORTS

Readymade Garments Textiles steel jewellery precious stones, leather products coffee and tea spices and carpets

newsprint pulp lumber peas asbestos, iron, copper Other industrial materials

Agriculture and agri-food (Ahmadabad/Mumbai): While Canada is already providing 38.3 percent of Indias pulse imports, its growing population and demand presents an enormous opportunity for Canadian producers. Energy (Ahmadabad/Mumbai): India needs to quintuple its electricity within 25 years and is looking for alternative energy sources to meet this demand. Infrastructure (Delhi/Ahmadabad/Mumbai): The Government of India has identified the need for an investment of $800 billion in infrastructure, including roads, bridges, railways, ports and airports. Information and communications technology (Delhi): Canadian expertise in digital media and wireless technologies, among other areas, can help India to provide communications access to people living in remote areas of the country. Education (Delhi): Canadian know-how can help bridge the large gap between the supply of and demand for educational facilities and address the shortage of qualified educators. Manufacturing (Delhi/Pune): India is the worlds second-fastest growing automotive market, after China. Canada, as the third-largest exporter of automotive products after Japan and the United States, is well positioned to be part of this global value chain.

Canada became a net importer of FDI from India In 2008, India is Canadas 20th largest source of FDI While Canada is Indias 40th largest source of FDI. The stock of Canadian investment to India reached US$753 million in 2008 which was more than double, while the stock of Indian investment in Canada reached an all time high of US$961 million. As a result in 2008 for the first time in history
In 2010, the stock of two-way direct investment between Canada and India was more than C$7 billion.[Figures in million Canadian Dollars]

Indias export 2008-09 to Canada and world

India
Figures in $C (2010) GDP: ($ billion) GDP per capita: ($) GDP growth rate: (%) Inflation: (%) Unemployment: (%) 1680.83 1411.84 10.09 11.99 0

Canada
1624.26 47688.92 3.22 1.78 7.00

According to Indian statistics, in 2008, Indias total merchandise trade was US$516.5 billion, and its top trading partners were the United Arab Emirates, China and the United States, accounting for 9.9% and 8.6% and 8.1% of total merchandise trade, respectively (2008-09). Canada was ranked as Indias 30th trading partner. More than 70% of total Indian merchandise exports to Canada Indias leading sectors of export in 2008 were chemical products followed by textiles and wearing apparel miscellaneous manufacturing products as well as machinery and equipment Canadas merchandise trade exports to India were also concentrated in four sectors, comprising chemical products vegetables, fruits and nuts (mainly pulses including dried peas and lentils); pulp and paper products; and machinery and equipment.

CANADIAN TOTAL EXPORTS TO INDIA

2006 POTASSIUM CHLORIDE PEAS - DRIED AND SHELLED NEWSPRINT - IN ROLLS OR SHEETS 7.07% 8.02% 12.15%

2007 9.90% 15.88% 7.37%

2008 28.45% 15.90% 9.61%

2009 20.49% 16.14% 2.68%

2010 15.68% 14.44% 13.95%

SEMI-CHEMICAL WOOD PULP

LENTILS - DRIED AND SHELLED

3.41%
0.51%

3.70%
4.74%

3.17%
1.40%

4.99%
8.39%

5.37%
5.36%

2006
DIAMONDS - NON-INDUSTRIAL - WORKED - NOT MOUNTED OR SET HETEROCYCLIC COMPOUNDS CONTAINING A PYRIMIDINE RING OR PIPERAZINE RING, NES ARTICLES OF JEWELLERY PRECIOUS METALS (OTHER THAN SILVER) MEDICAMENTS NES - IN DOSAGE PETROLEUM OILS AND OILS FROM BITUMINOUS MINERALS, O/T CRUDE, O/T LIGHT, AND PREPARATIONS

2007 6.06% 1.88%

2008 5.75% 4.59%

2009 4.07% 3.56%

2010 4.56% 4.26%

6.82% 0.36%

2.20% 0.58% 5.13%

2.74% 0.65% --

3.01% 1.12% --

2.91% 1.74% 0.01%

3.77% 2.92% 2.37%

A new agreement has been formed between Information Technology Association of Canada (ITAC) and the National Association of Software and Service Companies (NASSCOM) in India. Comprehensive Economic Partnership Agreement (CEPA) Canada is officially opening free-trade negotiations with India, one of the worlds fastest-growing economies. A free-trade pact with India would increase sales of a Canadian exports sectors such as forest products, minerals, manufactured goods, agricultural products, fish and seafood products, machinery, construction materials, aerospace and environmental technologies. Prime Ministers of the both the countries have committed to tripling the two countries trade by 2015to $15 billion.

India is investing some $200 billion in infrastructure over the next 10 years-which is good news for Canada Sectors where there are opportunities for Canadian businesses include: Agriculture and Agri-food , Energy, Infrastructure, Information and communications technology , Education, Manufacturing

Canada is officially opening free-trade negotiations with India, one of the worlds fastest-growing economies. A free-trade pact with India would increase sales of a Canadian exports sectors such as forest products, minerals, manufactured goods, agricultural products, fish and seafood products, machinery, construction materials, aerospace and environmental technologies, the federal government said

India levies the following import duties:

Basic Customs Duty (BCD): It may be calculated either as a percentage of the value of the goods or at a specified rate that depends on the type of goods. Countervailing Duty (CVD): Officially called additional duty of customs, this is a duty used to protect Indian industries. It is levied on the cost of imported goods and equals the excise duty applied to the same goods when manufactured domestically. Anti-dumping Duty: Anti-dumping duty applies to specific goods imported from specific countries to prevent harm to domestic industries. Safeguard/Protective Duty: If the government establishes that the quantity of a good being imported is high enough to damage a domestic industry, then it can apply a safeguard duty to the good. Customs Handling Fee: The Indian government assesses a one per cent customs handling fee on all imports. For more information about customs, refer to the Indian ExportImport Portal (14)

Major exporter of: Pulp and paper, Automotive, Metals and industrial machinery, Power, Transportation and equipment for the processing, packaging and storage of Agrifood to India

In

2008-Priminister of Canada Mr. Stephen Harper urges the stronger trade relation with the India In 2007- Canada India Conclude Investment agreement In 2006India became Canada's 14th-largest export market, up from 18th the previous year. Direct investment between the two countries reached $528 million. Canada's top exports to India were cereals, paper and paperboard, and ores, slag and ash. 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 that will enhance future trade and investment through the commercialization of research.

Minister Fast meets with Pranab Mukherjee, Indias Minister of Finance on November 3rd 2011 in New Delhi India