If Canada bans India, who will suffer the loss? Understand the whole game through statistics

India Canada Relations: There seems to be tension in the relations between India and Canada. The biggest reason behind this is the issue related to the murder of Khalistani separatist Hardeep Singh Nijjar, regarding which Canada is making baseless allegations against India. Recently, the Canadian government made serious allegations against the Indian High Commissioners and said that they were complicit in the murder of Nijjar.

After this, the Indian government decided to recall its officials and also gave an ultimatum to 6 Canadian diplomats to leave India by October 19. However, amid all this, on Tuesday (October 15), a statement from Canada’s Foreign Minister Melanie Jolly came out, in which she said that her country was thinking of imposing sanctions on India. So let us try to understand with the help of statistics that if something like this happens then which country will suffer the most loss.

There is trade worth Rs 70,000 crore between India and Canada. If we talk about the year 2022-23, there was a trade of $8.3 billion between the two countries, which increased to $8.4 billion in the next year. During this period, India’s exports increased to 4.6 billion dollars, while India’s imports remained 3.8 billion dollars. At present, there is no economic dispute of any kind between the two countries, but it cannot be ruled out that if something like this happens, it will have an impact on both sides.

Investing in Canadian Pension Funds
Canadian Investment According to a report by AsiaPacific.ca, Canadian pension funds have invested approximately Rs 6 lakh crore in India. Between 2013 and 2023, these funds invested heavily in real estate, financial services, industrial transport and infrastructure sectors. Apart from this, 600 Canadian companies are doing business in India, while more than 30 Indian companies have invested Rs 40,446 crore in Canada. 17,000 people work in it.

What kind of trade between India and Canada?
Economic relations between India and Canada are strong in the field of trade and investment. India mainly exports gems, jewellery, precious stones, medicines, readymade garments, organic chemicals, and light engineering goods to Canada. At the same time, India imports pulses, newsprint, wood pulp, asbestos, potash, iron scrap, copper, minerals and industrial chemicals from Canada. According to Canada’s National Investment Promotion and Facilitation Agency (Invest India), Canada ranks 18th among foreign investors in India. Between 2020-21 to 2022-23, Canada invested a total of $3.31 billion in India. However, this investment is only 0.5% (half percent) of India’s total FDI, which is a small but important part of the economic relationship with Canada.

What are the challenges of the future?
If the ongoing diplomatic tension between India and Canada continues, it could have a deep impact on the economy of both the countries. A decline may be seen especially in the areas of business investment and import-export. Keeping this situation in mind, both countries will have to consider economic strategies and be prepared to deal with possible risks.

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