Canada and India - trade Relations and Foreign Affairs - May 2018
1. CANADA AND INDIA -
TRADE RELATIONS
AND FOREIGN
AFFAIRS
BY: PAUL YOUNG, CPA, CGA
MAY 22, 2018
2. OVERVIEW
India is very important market for Canada as it is home to
1.25B people.
Canada offers oil, natural gas, grains, meats, vegetables,
dairy, airplanes, nuclear technology, clean technology (Water
Management, Land Management, Solar, Wind, etc.)
India’s PM is cleaning up corruption. The problem is
corruption is very deep in India.
India is looking for more oil and gas deals. India has been
working with Iran to expand oil imports into India.
3. PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com
5. INDIA ECONOMY
According to CIA Factbook sector wise
Indian GDP composition in 2014 are
as follows : Agriculture (17.9%),
Industry (24.2%) and product. India
accounts for 7.68 percent of total
Services (57.9%). Total production of
agriculture sector is $366.92 billion.
India is 2nd larger producer of
agriculture global agricultural output.
GDP of Industry sector is $495.62
billion and world rank is 12. In
Services sector, India world rank is 11
and GDP is $1185.79 billion.
Contribution of Agriculture sector in
Indian economy is much higher than
world's average (6.1%). Contribution of
Industry and Services sector is lower
than world's average 30.5% for
Industry sector and 63.5% for Services
sector.
7. ISSUES FACING INDIA
Anti-corruption efforts
Liberalizing foreign direct investment (FDI) across-the-board
Vigorously pursuing efforts to ease the cost of doing business
Restoring stability and predictability in tax decisions, reflected in the settlement of the Minimum Alternate Tax (MAT) imposed on foreign companies, and increasing substantially the limits beyond which the tax
department will file appeals;
Implementing a major public investment program to strengthen the country’s infrastructure and make up for the deficiency of private investment;
Instituting a major crop insurance program to cushion farmers against adversity;
Limiting farm interventions which had a first-order effect in moderating overall inflation;
Elevating to mission mode the financial inclusion agenda via the Jan Dhan Yojana by creating bank accounts for over 200 million people within months. Financial inclusion will also be furthered by the licensing of 11
payments banks and 10 small banks;
Advancing the game-changing JAM (Jan Dhan Aadhaar Mobile) agenda. LPG witnessed the world’s largest direct benefit transfer program, with about 151 million beneficiaries receiving a total of R29,000 crore in their bank
accounts. The infrastructure is being created for
extending the JAM agenda to other government programs and subsidies;
Attempting to change social norms in a number of areas: open defecation, and voluntarism in giving up subsidies.
13. BLOG – INDIA AND CANADA
Source - http://www.livemint.com/Politics/QPBGS9TrzqQzYqFo7Z1laK/India-Canada-look-for-breakthrough-on-free-trade-agreement.html or http://www.thehindu.com/business/Canada-India-free-trade-agreement-talks-delayed/article13997459.ece
• Canada and India have done FTA
talks since 2015 (CPC/Harper). The
issues are about Canada being
small export market for India. India
wants services part of any deal
(Outsourcing)
• India refuses to sign FIPA. FIPA is
important as it will protect
investors.
• Canada has little to offer India
other than raw materials, airplanes,
forestry products and food products.
• Canada also needs to enforce IP
protection. India is a country know
to abuse IP
• Modi is open to reforms, but has yet
to push those reforms through to
policies
14. PM TRUDEAU AND INDIA
• India’s PM always meets PM/Presidents of Countries.
Trudeau is greeted by low ranking minister
• PM Modi welcomes Iran -
http://www.news18.com/news/india/irans-president-
hassan-rouhani-arrives-in-delhi-on-3-day-visit-
chabahar-oil-on-agenda-1663681.html. It is interesting
for PM Trudeau to be in the country the same time as
Iran’s President.
• PM Modi welcomes PM of Israel -
https://www.youtube.com/watch?v=zuFDCLBxJ7w
15. SIKH SEPARATIST AND LIBERAL PARTY OF
CANADA
Source - https://www.ctvnews.ca/politics/canada-seeks-meeting-with-indian-politician-over-sikh-separatist-claims-1.3808412?autoPlay=true
The Canadian government is now seeking
a meeting with the Indian politician who
has publicly accused members of
Trudeau's cabinet of being connected to
the Sikh separatist movement.
A government official told reporters
travelling with Prime Minister Justin
Trudeau's state visit to India that the
Canadian high commissioner in India was
asked today to set up a meeting for
Trudeau with Punjab Chief Minister
Amarinder Singh.
Just three days ago Trudeau's officials
denied Indian media reports that Singh
would serve as Trudeau's tour guide
when he visits the Golden Temple in
Amritsar later this week and said no
meeting between the two was planned.
• People on the ground statement is correct. What
is missing is that there have been issue with
buying off politicians as part of getting business
projects approved in India -
https://www.scoopwhoop.com/india-most-corrupt-
country-in-asia-statistics/#.3kp2zkj5k
• Trudeau’s team includes four MPs with Sikh
background -
http://nationalpost.com/news/politics/how-the-
liberals-alleged-support-of-sikh-separatists-is-
fuelling-canada-india-tensions or
https://www.hindustantimes.com/punjab/2-sikh-
mps-elected-from-bc-minorities-turn-tide-in-
canada/story-bBBelnwEXI1cAo7zhSsWNL.html
• Harper started trade talks which continue to this
day. The problem is the Liberals will continue to
push their social agenda which never goes over
well with trade agreements