Escalating tensions between Canada and India surrounding allegations of a Khalistani terrorist’s murder threatens to cast a shadow over their flourishing economic ties, which extend well beyond the realm of commodities. Recent data from Statistics Canada reveals that investments between the two nations surged to C$36.2 billion (approximately ₹2.24 lakh crore) in 2022, marking a substantial 37% increase in just four years.
India wields significant influence in Canada’s education sector, with the distinction of being the largest source of international students in Canadian universities and colleges. Additionally, three prominent Canadian pension funds—Canada Pension Plan Investment Board, along with funds representing Quebec workers and Ontario teachers—have established offices in major Indian cities like Mumbai and New Delhi. Together, these funds oversee assets exceeding C$1.2 trillion (approximately ₹74 lakh crore).
Canada Pension Plan Investment Board, the nation’s largest pension manager, publicly disclosed an investment of $21 billion (around ₹1.74 lakh crore) in India roughly a year ago. This substantial investment includes a notable 2.7% stake in Mumbai-based Kotak Mahindra Bank Ltd. and holdings in approximately 70 other publicly traded Indian firms. Similarly, the Caisse de Depot et Placement du Quebec and Ontario Teachers’ Pension Plan have substantial investments in India, amounting to C$8 billion (approximately ₹49,500 crore) and over C$3 billion (approximately ₹18,500 crore), respectively.
Despite the burgeoning economic relationship, talks regarding a potential trade agreement between India and Canada have been put on hold. In the past year, Canada exported goods and services valued at C$11.6 billion (approximately ₹71,700 crore) to India, including commodities such as lentils, metallurgical coal, and newsprint. In contrast, India’s primary exports to Canada have included smartphones and railway cars.