Simmering tensions between India and Canada not to imperil trade, investments: Sources
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Indian PM Narendra Modi (right) with Canadian PM Justin Trudeau at Bharat Mandapam convention center, in New Delhi, on Sept 9.
PHOTO: REUTERS
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NEW DELHI - India is not planning to impose any measures to curb imports or investments from Canada despite simmering diplomatic tensions between the two countries, two senior government sources in New Delhi said.
Ties between New Delhi and Ottawa deteriorated sharply after Canadian Prime Minister Justin Trudeau said in September
India has rejected Canada’s suspicions about its role in the murder of Hardeep Singh Nijjar,
While officials from both India and Canada will try to resolve the diplomatic dispute, India’s government has no plans to impose curbs on imports or investments from Ottawa, said two senior government sources, who declined to be identified as they are not authorised to talk to media.
The political uproar over the issue and deteriorating diplomatic relations would not spill over into either a bilateral trade dispute or impact investment, they said.
Canada on Thursday pulled out 41 diplomats from India
India imports potash, lentils, and energy products such as coal, coke and briquettes among other goods from Canada.
India’s exports to Canada include consumer goods, garments, and engineering products such as auto parts, aircraft equipment and electronic items.
Bilateral trade between Canada and India touched US$8 billion (S$11 billion) in 2022.
Canada has invested more than US$3.6 billion in India, with over 40 per cent of that being in services and infrastructure, according to Invest India.
There has been no disruption in imports from Canada, and that is likely to continue, the sources said.
The federal Trade and Finance ministries did not immediately respond to a Reuters e-mail seeking comments.
Although Canadian lentil sales to India slowed down in September due to concerns over the diplomatic spat, New Delhi has not asked importers to refrain from buying the protein-rich commodity from Ottawa.
Late in September, Reuters reported India’s JSW Steel slowed down the process to buy a stake in Canada’s Teck Resources. REUTERS
