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Indo-Canadian ties grow from peacekeeping to deepening trade
India and Canada have enjoyed a wide-ranging
and broad-based relationship ever since 1947, when India gained
independence. The commonalties between the democratic structures
of the two countries and the values and interests shared by
them provided the basis for this comprehensive relationship.
The partnership between the two countries was enriched through
common participation in peacekeeping missions.
| ‘India should
eliminate brokers from the trade arena’ |
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The Canadian High Commissioner, Peter
Sutherland, says his country offers good opportunity
to Indian corporates for setting up offices there. Excerpts
from an interview with Huma Siddiqui:
Which areas is Canada is looking at to invest
in India?
India is rapidly becoming a focal point for Canadian
technology firms as well as firms in the resource and
infrastructure sectors. Our trade with India has diversified
tremendously over the last 15 years.
Canadian industry is a world leader and offers state-of-the-art
technologies to tie-up with India’s manufacturing strengths.
Canadian Manufacturers & Exporters is Canada’s leading
business network. Its members represent 75 per cent
of the country’s manufacturing output and 90 per cent
of merchandise exports.
The Indian government must take effective measures to
eliminate brokers and appoint ‘trade ambassadors’ to
facilitate foreign investment in the country. Canadian
companies have the technology, finance and experience
in all aspects of power generation, transmission and
distribution activities.
In the transport sector we have the expertise, not in
road building per se, but have the superiority in constructions.
There is a lot of scope for improvement in trade between
the two countries.
Canada’s share in the Indian market is less than 1 per
cent, while with China it is on the higher side. The
aim is to bridge the difference and by 2003 double the
present trade figures. We want to focus on high-end
products and sectors like services, commodities, bio-technology
and ICT. We are also very strong in the environmental
technology and services.
In which other sectors can you offer expertise?
A lot of Canadian Film and Animation Companies are
expressing interest in India. There are a few joint
productions under way in Toronto. In the animation field,
where there is scope for enormous growth Canadian companies
are looking for partners here.
In IT, a number of Indian companies are looking towards
Canada for setting up offices. It is cheaper, mainly
because the cost of skilled labour is much lower.
How do you assess the tourist traffic?
At present, the Festival of Canada is going on here.
Last year, tourist traffic was almost 36,000.
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Canada became a significant aid contributor
to India in 1951. Aid volumes peaked to about $100 million
annually in the period 1969-78. Close study of the current
Indian situation has convinced Canada that the size of India’s
economy, its growth rate, advancing industrial profile and
the tremendous buying power of the sizeable middle class in
India (estimated at between 250 to 300 million) represent
a great opportunity for it. It is in the context of this understanding
that Canada launched (June 1995) a “Focus India” trade strategy,
which culminated in the visit to India in January 1996 of
Team Canada led by Prime Minister Jean Chretien. Seventy eight
commercial deals worth $3.29 billion were concluded between
Indian and Canadian companies during this visit. This high
water-mark has been established against the backdrop of quickly
ascending graphs in the bilateral trade sphere and in the
area of Canadian investments in India.
Exports from India to Canada have traditionally covered garments,
textiles products, cotton, carpets and rugs, leather articles,
jute, gems and jewellery, handicrafts, spices, coffee, tea,
fruits and nuts, organic chemicals and software. Canadian
exports to India comprise paper and pulp board, wood pulp,
iron and steel, machinery and equipment, electric and electronic
goods, ships, resin, plastics, asbestos, vegetable fats and
oils, lime, cement and sulphur.
The deepening commercial and economic relationship between
the two countries stands embodied in the Joint Business Council/India-Canada
Business Alliance platform operated by the Federation of Indian
Chambers of Commerce and Industry, on the Indian end, and
the Canada-India Business Council, on the Canadian side.
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