Diplomatic Tensions: Trade Between India and Canada Remains Resilient

Despite escalating diplomatic tensions, trade between India and Canada remains largely unaffected. Government sources assert that bilateral trade, though modest, is stable. Canadian funds may redirect through countries like Singapore. Key imports, such as lentils, can be sourced from Australia, ensuring opportunities for Indian students and professionals remain unhindered.

In light of the escalating diplomatic tensions between India and Canada, the bilateral trade and investment ties continue to remain steady, according to government sources. The trade value, although not substantial, is resilient, with options for Canadian funds to reroute through alternative countries, including Singapore, the UAE, and the US.

India, which ranks Canada as one of its primary sources of lentils, can now explore imports from Australia. Meanwhile, Indian students and professionals have viable opportunities across various countries, ensuring minimal impact from the diplomatic row.

Amid the tensions, merchandise trade between the two nations slightly increased from USD 8.3 billion in 2022-23 to USD 8.4 billion in 2023-24. Think tank Global Trade Research Initiative emphasized the need for careful management to prevent economic repercussions as the diplomatic disagreement persists.

(With inputs from agencies.)