Growing relations between India and Canada

Olivia Gagné

The Canadian Prime Minister Stephen Harper landed in India for his longest trip in a foreign country since his election victory of 2006. This reflects the growing interest Canada has been showing towards India over the last few years, keeping in mind its objective to diversify it’s trading partners and thus secure its future prosperity.

The current bilateral relations have great potential to be strengthened in many areas. A Comprehensive Economic Partnership Agreement (CEPA) is likely to be concluded next year between India and Canada, which would help reach the annual common fixed target of $15 billion in bilateral trade from the current $5 billion.

Canadian businesses clearly size the growing Indian market as a not-to-be-missed opportunity. In turn, India considers all that Canada has to offer with respect to the several challenges it is increasingly facing. Canada is an emerging energy superpower and could start exporting oil and liquefied natural gas to an energy-deprived India as soon as the required infrastructures to do so are installed. 99 percent of the Canadian hydrocarbons are sold to the United States of America, at a ridiculously cheap price. Canada has an obvious economic advantage selling it at higher prices, closer to the international ones and India is willing to pay this price to get Canada as a reliable supplier. Nuclear energy is also on the cards as both the countries signed a civil nuclear agreement two years ago.

Apart from the Indian conquest for energy security, the education of the current and future generations of Indians is a major challenge that could find part of the solution in better cooperation with the Canadians. Last year, 13000 Indian students went to Canada for education. Canada is seriously interested in welcoming more in the coming years for their intellectual capabilities. The Canadian post-secondary education is one of the best in the world as showed in a recent OECD report. The Canadian expertise could greatly benefit the Indian authorities on planning and managing public education. Canada also has extraordinary know-how in the environment protection field from which India has a lot to learn. In sum, the Canadian private sector is looking avidly at all the infrastructure needs in India and could help in achieving the considerable government spending of this sector.

The Canada-India relationship can also be strengthened if both countries engage together in other parts of the world for joint cooperation. For example, the aid sector in Africa offers many opportunities for this. Canada seriously needs to improve its image in this region as it failed to gain a seat in the United Nations Security Council (UNSC) in 2010 partly because it lost credit with the continent over the last few years. India is similarly seeking the African support for its bid for a UNSC permanent seat, and is obviously interested in accessing the resources of the area. The share of Canada’s development experience in Africa could help make India’s “new role” as a global donor much more effective. Together they could even plan triangular cooperation projects, which are an innovative approach to development, seen as highly effective and which would benefit each of the three committed parties.

The previous items of the bilateral possibilities might be part of the agenda on the prime minister Stephen Harper’s second official visit to India from November 3rd to 9th.

Olivia Gagné is a graduate student at the Université Laval and currently doing an internship at The Takshashila Institution.

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