Canadian colleges are reassuring Indian students that they are welcome despite the ongoing diplomatic tensions between Canada and India. India is the largest source of international students for Canada, contributing over $14.6 billion to the Canadian economy annually. While Canadian universities believe that the disagreement is temporary, some Indian students are concerned about their safety. The Association of Consultants for Overseas Studies reports that many students are considering delaying their studies or attending classes online. The Indian government has advised its citizens to avoid traveling to parts of Canada. However, education remains one of Canada's biggest exports, surpassing industries such as auto parts and building materials. University officials remain optimistic that the situation will eventually be resolved. In the Indian state of Punjab, where many families have members studying or preparing to study in Canada, there is growing worry. One parent expressed concern about their lifelong savings invested in their child's education in Canada. Indian student Gurbakhshish Singh expressed sadness over the deteriorating relationship between India and Canada, a country known for its welcoming attitude towards international students. [0dbdb99e][4e51ba8a]
The ongoing tensions with Canada are having a negligible impact on India's economy, according to an expert. While some observers have overhyped Canada's contribution to the Indian economy and stock market, the expert argues that Canada's decisions have minimal impact on India's markets. Canada accounts for less than 1% of total investment in India and is the 18th-largest foreign investor. The recent dip in foreign investments in India is attributed to profit booking, as the Indian stock market has high valuations. The expert also notes that any slight drop in the number of Indian students going to Canada for higher studies would have a greater impact on Canada's economy than on India's. A New Delhi-based think tank estimates that a 5% drop in Indian students going to Canada would result in a $700 million hit to the Canadian economy. Overall, the expert concludes that the ongoing tensions with Canada are not significantly affecting India's economic health. [2f6cbd9f]
Polls indicate Donald Trump has a slight edge over Joe Biden in the U.S. presidential election in November. Prime Minister Justin Trudeau says a second Trump term could lead to unpredictability in the trade sector. Canada should explore India as a strategic counterbalance to a possible Trump 2.0 era. India achieved a remarkable economic growth rate of 7.2% in the 2022-23 fiscal year. Canada-India relations have been severely strained since 2018. Tensions calmed recently. Canada should resume negotiations and finalize the comprehensive economic partnership agreement (CEPA) with India, which has the potential to boost Canadian GDP up to $8 billion by 2035. A finalized CEPA would offer Canada a suitable market for renewable energy. CEPA could also mitigate Canada's heavy reliance on fruit imports from the U.S. Canada is the second-largest exporter of wood products worldwide but its wood exports to India rank below those of the U.S., China, and Japan. Canada must try to get the Indian government to unfreeze the trade negotiations to provide a buffer for any shock that a Trump presidency might bring. [983c1032]
A trade delegation of Indigenous farmers and agribusiness owners from the U.S. visited Vancouver to promote Indigenous-produced food and establish trade relationships. The trade mission brought together representatives from 14 American Indigenous agribusinesses and 13 American Indigenous leaders with Canadian food importers, buyers, and representatives from B.C. First Nations. Canada, particularly B.C., represents a strong potential market for Indigenous-produced food. The trade mission aims to find new markets for American Indigenous-produced food and promote Indigenous peoples' participation in international trade. Canada ranks among the top markets for U.S. agricultural product exports, with total U.S. agricultural and related product exports totaling $28.2 billion in 2023. The trade mission is seen as an opportunity to strengthen communities and invest in Indigenous businesses. [31071d4f]