For the first time, Canadian exports to India have crossed $1-billion while two-way trade approaches $3-billion. Trade includes not just Business Process Outsourcing (BPO), from call centres and tech support to the sophisticated financial services, auto parts, pharmacy, and information technology, but also cutting-edge R&D, especially in engineering. Non-conventional areas are also growing: oil and gas, civil aviation, agro-processing, infrastructure and even animation.

Major Canadian companies such as the engineering consultancy firm SNC Lavalin, Bombardier, Sun Life Insurance and Bell Helicopters have been operating in India for a long time. Their ranks are now being swelled by the likes of Magna, the second-largest auto parts manufacturer in the world, which is attracted by the low costs and quality control achieved by Indian auto parts manufacturers, especially those from Tamil Nadu, in recent years. Magna has appointed a permanent representative in India and is moving to set up manufacturing facilities there for both the domestic and global market. Other Canadian firms looking to India are from the telecom, animation, agro-processing, environmental technology and heath services fields — this last including medical tourism, where Canadian interest is just beginning to surge. There are also such niche areas as plastics, high fashion and now higher education.

Oil and gas is a new sunrise sector for bilateral investment. After Niko Resources of Alberta, in a 10:90 partnership with Reliance Industries, found natural gas deep offshore of the Krishna Godavari basin in Southeastern India, and another Calgary firm, Canoro, found oil in Northeastern India, Canadian interest in exploring for oil and gas in India surged.

In environment technology, the two countries are planning to establish a high-tech forum for bilateral co-operation. This would be primarily a public-private partnership between the governments and the private sectors on both sides, to act as a conveyor belt for introducing Canadian environmental technologies in India. With the Indian economy set to grow at 8%-plus over the next several years, environmental management will be a major concern.

Civil aviation also offers great potential for co-operation, given the boom in domestic air travel in India and the surging demand among Indian private-sector airlines for aircraft maintenance and related services. An Indo-Canadian company, Cubex India from Manitoba, has already established a pilot training school in Pune (Western India).

Indian investment in Canada has increased rapidly in recent years — in IT, where practically all the Indian software majors are present in Canada; in pharmaceuticals, with Ranbaxy marketing its own patent drugs here; and in mining, oil and gas, auto parts and financial services. Indian companies have made major acquisitions in Canada, with VSNL taking over the $285-million Teleglobe and investing another $30-million plus in it, and the Aditya Birla Group, which already had two pulp and paper mills in New Brunswick, acquiring Canada’s top BPO firm, Minacs Worldwide.

While the present level of trade, investment and overall business interaction between Canada and India are below potential, the trend is for strong expansion in the near future. The recent change of government in Canada has not affected this in any way, with Conservative Prime Minister Stephen Harper having laid out a detailed road map for bilateral co-operation in a recent letter to Indian Prime Minister Dr. Manmohan Singh, who is due to pay an official visit to Canada next year. For Canada and India, old friends and sister democracies, their relationship is truly set for a takeoff.

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