INSUBCONTINENT EXCLUSIVE:
This allegation led to a back-and-forth expulsion of diplomats and paused Free Trade Agreement (FTA) talks
| Photo: Istock2 min read Last Updated : Oct 15 2024 | 7:18 PM IST
The escalation in the diplomatic row between India and Canada will not
have an impact on the bilateral trade and investment ties between the two countries, government sources said on Tuesday.
They also said
that the bilateral trade value is not significant and Canadian funds get route their investments through Singapore, the UAE and the US.Click
sources of lentils and now that can come from Australia, they said, adding that Indian students and professionals would also have huge
in 2022-23 to $ 8.4 billion in 2023-24.
India's imports from Canada increased to $ 4.6 billion, while exports saw a marginal dip,
falling to $ 3.8 billion.
During April-July this fiscal, India's exports stood at $ 1.3 billion, while imports were $ 1.37
billion.
Think tank Global Trade Research Initiative (GTRI) too has stated that the diplomatic tensions between India and Canada have so
far not impacted the bilateral trade in goods between the two countries.
However, it added that as this dispute drags on, both nations
will need to carefully manage their actions to avoid a full-blown economic fallout.
India on Monday announced withdrawing its high
commissioner and other "targeted diplomats and officials" from Canada after strongly dismissing Ottawa's allegations linking the envoy to
an investigation into the killing of Sikh extremist Hardeep Singh Nijjar, in a major downturn in already frosty ties between the two
nations.
India's decision came shortly after the Canadian Charge d'Affaires Stewart Wheelers was summoned to the Ministry of External
Affairs (MEA) and was told bluntly that the baseless "targeting" of Indian High Commissioner Sanjay Verma and other diplomats and officials
was "completely unacceptable".
The strain started when Canadian Prime Minister Justin Trudeau accused India of involvement in the killing
of a Canadian citizen and Sikh separatist leader.
This allegation led to a back-and-forth expulsion of diplomats and paused Free Trade
Agreement (FTA) talks.
India has received $ 4 billion foreign direct investments from Canada during April 2000-June 2024.First Published:
