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India, Canada trade ties remain stable despite political differences
In 2024, bilateral trade in goods totaled approximately ₹69,368 crore. In 2023, the figure was about ₹65,723 crore
Toronto: Despite the crisis in relations between India and Canada, trade ties appear to have remained stable and, in fact, improved slightly in 2024 over 2023.
In 2024, bilateral trade in goods totaled CA$ 11.36 billion (approximately ₹69,368 crore). In 2023, the figure was CA$ 10.74 billion (about ₹65,723 crore).
The volume of merchandise trade increased by over 64% in 2024 from 2020, when it totaled CA$ 7.63 billion (approximately ₹42,139 crore), according to data from Statistics Canada, the country’s data agency.
A trade dashboard posted by India’s Consulate in Toronto gave similar data but for the period January to November, and stated that it “indicates a moderate increase”.
The top five categories of exports from India to Canada include medicaments, articles of jewellery, smartphones, seafood and diamonds. The major imports into India include peas, bituminous coal, lentils, potassium chloride and newsprint.
Of course, the figures remain underwhelming but noteworthy given the cratering of the relationship since Canadian Prime Minister Justin Trudeau’s statement in the House of Commons on September 18, 2023, that there were “credible allegations” of a potential link between Indian agents and the killing of pro-Khalistan figure Hardeep Singh Nijjar in Surrey, British Columbia, three months earlier. Ties deteriorated further in October last year, when India withdrew six diplomats and officials from Canada after Ottawa accused them of being linked to violent criminal activity in the country. New Delhi has dismissed the allegations and also expelled six Canadian diplomats in October.
“Both governments have tried to protect the economic relationship. There is desire on both sides to ringfence it from the political and diplomatic crisis,” Vina Nadjibulla, vice-president, research and strategy with the Vancouver-headquartered Asia-Pacific Foundation of Canada, said.
Just prior to the tensions developing, the two countries were looking at taking the economic partnership to a new level and were closing in on an Early Progress Trade Agreement (EPTA). However, negotiations were paused by Ottawa in August 2023 and it later emerged that was due to the crisis precipitated by Nijjar’s killing.
However, Nadjibulla felt that US President Donald Trump’s tariff threats are “making every government reconsider fundamental assumptions about economic relations”.
Sub-national engagements with India have continued with delegations from the provinces of Alberta and Saskatchewan visiting this month. “The potential in the relationship is still very strong as the economies are very complementary,” she stressed.
