Market Insider By by Kumaran Nadesan 275 Views

India is Canada’s Answer to Global Trade Upheaval

 As a proud Canadian, I want our country to lead. I want us to be respected on the world stage, shape alliances, and survive the global trade upheaval set in motion by U.S. President Donald Trump. As Canada urgently pursues trade diversification, it's time to double down on our Indo-Pacific Strategy by specifically re-centring India in it.

 Canada’s much talked about focus on the Indo-Pacific region will remain just that — mostly talk — if we don’t find a way to bring India back to the table right away. India isn’t just another player in the Indo-Pacific — it’s theplayer. With a population of 1.4 billion, a swelling middle class, a booming tech sector, and an increasingly assertive geopolitical presence, India is not the future — it is the present, an inescapable reality Canada must accept.

Canada’s trade relationship with India has always been a tale of potential over performance. Despite both countries sharing democratic values, a Commonwealth legacy, and robust diaspora links, trade has remained underwhelming for decades. Formal trade between Canada and India began post-independence, with Canadian wheat and fertilizers supporting India’s Green Revolution. Over time, bilateral trade evolved beyond commodities, with growing exchanges in pharmaceuticals, education, and technology. But numbers don’t lie. As of 2023, two-way trade hovers at just over $10 billion — a fraction, when compared to Canada’s commerce with China, the U.S., or even smaller European nations. For two G20 partners, that’s embarrassing.

The roots of this sluggish growth lie in inconsistent political will. The Comprehensive Economic Partnership Agreement (CEPA), first initiated in 2010, has seen over a dozen rounds of negotiations with no conclusion in sight. However, it appeared the two countries were coming to an agreement when then trade minister Mary Ng and her Indian counterpart Piyush Goyal suggested during a private luncheon in Toronto in the summer of 2023 that they were close. A few months later, former Prime Minister Justin Trudeau dropped a diplomatic bombshell in parliament and accused the Indian government of being involved in the assassination of Canadian Sikh activist Hardeep Singh Nijjar who advocated for an independent Khalistani state — and trade negotiations were set back.  

Diplomacy is complicated. But that’s no excuse for inaction. While successive Canadian governments have spoken warmly of India, they have failed to act decisively. On the Indian side, Canada has rarely been seen as a strategic priority — a perception worsened by deteriorating diplomatic relations. In a part of the world dominated by rising autocracies, Canada has the rare chance to partner with a democratic powerhouse that shares — at least broadly — its values and interests.  

India is not a perfect partner. But against the backdrop of Canada’s relations with China, we should not be looking for a perfect partner either. Our strategy with India does not require agreement on every issue — but it should demand alignment where it matters: trade, technology, climate, and safeguarding Canadian interests in the region.

Re-engaging India isn’t just about bilateral trade. It’s also about credibility. We must be able to compartmentalize — to protect our democratic values at home while still building strategic, pragmatic ties abroad. Other countries get it. They’re investing in India — diplomatically, militarily, economically.  

The federal government that will soon be elected in Canada must choose pragmatism over posturing when it comes to India. It should restart trade negotiations; launch a high-level diplomatic reset; and strengthen the hand of our business leaders like those who attended the recent Western Canada – India Leaders’ Summit hosted by the Canada–India Business Council in Vancouver last week, who are keen to do more business with India.

If Canada fails to act, we risk India walking away for good, the Indo-Pacific will move on without us and Canada will have missed a vital opportunity during this global trade upheaval.  

Kumaran Nadesan is the Co-Founder and Deputy Chairman of 369 Global.



Comments

There are 0 comments on this post

Leave A Comment