What is the current level of Canadian engagement with India?

Diplomatically, Canada has a six decade long association with India. The contribution made by Lester Pearson, who was Canada’s foreign minister and later Prime Minister in shaping the Indo-Canada relations is legendary. But it is also a fact that Indo-Canadian relations underwent a ‘pause’ as a result of nuclear non-proliferation issues since the 1970s. Those issues now stand resolved, after the decision of the IAEA and the Nuclear Suppliers Group (NSG) this year to resume nuclear trade with India in the light of the Indo-US Nuclear deal.

Is this a new beginning?

Bilateral relations are on a strong footing now. What is significant is that the resurgent relations are taking the two countries towards new areas of cooperation, not only in the nuclear sector but also in Science and Technology; this momentum is clearly visible. New avenues of cooperation have spawned in environment, power and agriculture sectors. Hopefully the Prime Ministers will meet more often. Outside the government-to-government relations, there has been expansion in business and investment relations in addition to rising people-to-people contacts. Canada is home to close to a million persons of Indian origin and continues to be the sought after destination for migrants from India. The number of Indian students going to Canada for higher studies is also increasing.

How do these multi-dimensional relations contribute to the bilateral relations?

As democracies and open societies, countries like Canada and India provide opportunities for multiple players outside the government domain to initiate manage and pursue relations with other societies. Business relations are part of this exercise. Canada pursues a trilateral approach in foreign relations. Foreign relations, foreign policy and international relations are practised at different levels. In foreign relations people, public, civil society, academic institutions play their role either in tandem with or separate from government to government relations.

As far as the foreign policy of Canada is concerned, it is essentially a doctrine of government to government. As far International Relations are concerned, it is a global role played by Canada in pursuit of its goals linked to its macro policies and national interest.

Did the interim ‘pause in relations’ affect trade and business relations?

The plateau in relations was more at the governmental level. The civil society, business relations had nothing to do with that. They moved on, taking benefit of the open market and reform process that India started in 1991. In the last 15 years, there has been tremendous expansion in business relations. Canadian company Sun Life was India’s largest life insurer prior to the nationalization of the industry in the 1950s. Sun Life Financial allied with Birla Group and re-emerged as an important player in the insurance sector. Automobile parts companies like Magna and others also came to India setting up facilities. Recently, aviation and rail car manufacturing company Bombardier opened a new factory in Gujarat. The Canadian-made BlackBerry is becoming ubiquitous among Indian business people. Scotiabank is a known name in India’s retail banking sector.

What is the level of Indian investments in Canada?

There are also substantial Indian investments in Canada. In the steel sector, Essar Group and Mittal Group are quite prominent. TCS is very active in IT and ICICI Bank has set up retail outlets in Toronto, Vancouver and Calgary. Canada and India combined are US$3 trillion economies, but have only about US$3 billion in trade between them – therefore our trade is not at the level it could be. What we need is a change in this scenario and a due reflection of the strength of the economy in trade figures. From Canada the exports to India are made up of agricultural goods (25%); inputs to India’s agriculture and industry (50%) and another 25 percent of hi tech ICT and engineering services.

There were reports of a Civil Nuclear Deal between India and Canada. Please comment on its progress?

A dialogue is ongoing. There are strong business relations between AECL (Atomic Energy of Canada Ltd) and its associated companies with Indian players. Canada will explore business relations in supplying nuclear hardware as well uranium.

What about the FTA Plan? Is it happening soon?

India’s CII and Canada’s Council of Chief Executives have prepared a report recommending a FTA, which is under the stage of government-to-government discussion. The idea is still on the table. Since the talks are in the preliminary stage no date can be announced now.

What about the S&T Agreement with India?

Canada signed a MoU with India for S&T collaboration, three years ago. In the total corpus, both sides have invested about US$600 million each. India and Canada possess some wonderful institutions in science. Thanks to the pact, real collaboration is happening in the biotechnology, environment, nanotechnology and aerospace sectors.

To what extent is Canada pro-active in working out solutions to energy security and sustainable energy sources?

 Canada is a net exporter of energy whereas India is a net importer of oil and gas. So the issue of energy security comes differently to Canada. Many Canadian companies are already active in India’s oil sector both in upstream and downstream operations. Names like Niko Resources Ltd. and Canoro Resources Ltd. are quite well-known. Canada will have a big presence in the upcoming Petrotech conference in New Delhi, for which our Deputy Premier of Alberta will be visiting India in January.

Does Canada see a big potential in India’s mining sector?

India’s mining sector carries huge potential. If India can liberalise this sector and define a role for foreign investors by providing security, long term mining rights and contracts, the results will be excellent. Canadians are probably the most versatile players in international mining operations. They are practically everywhere; all over Africa and Latin America. The British Columbia mining association has membership all over the world, but not very much in India. Maybe a change in India’s mining policy framework can bring in more Canadian companies and expertise to India.

Why does Canada continue to be a favourite destination for immigrants, especially Indians?

There is a great amount of similarity in values. Both countries are part of the Commonwealth. Both follow British system of government, rule of law and enjoy civic freedoms. Commonality of language is another strong point. Canada offers a great deal of choice for immigrants in terms of their professional and economic aspirations. Canada receives about 250,000 immigrants every year, of which between 20,000-40,000 are from India. Canada’s population is currently 33.2 million and is now growing at the rate of 1 percent a year.

What is the economic contribution of immigrants from India?

They have contributed in all sectors. The agriculture sector in British Columbia deserves special mention. They have produced academics, writers, film-makers, business people; some are also active in politics. In the cultural front, they have made their mark. In a recent cultural programme at Habitat Centre, an Indo-Canadian dance group performed, which was choreographed by a danseuse Lata Pada who is running a dance academy in Toronto. Francois Bourassa Quartet from Canada recently performed in Delhi as part of the Delhi Jazz Festival. It will be heartening to see more such performances.  

Finally, what is your message to India and our readers?

My fundamental message is that we need to capitalise on the strong mutual affinity in terms of what Canadians feel about India and Indians feel about Canada. I have spent most of my diplomatic life in China, Japan and South East Asia. What has been incredibly surprising is the degree of knowledge that Indians have about Canada. Economically and culturally there is a great deal of awareness in India about Canada. The Governments do play a big role in creating trade, cultural, academic and business relations, but we want to see other elements of civil society playing a larger role and taking the relations to a level appropriate to the high mutual interest existing between the peoples of our two countries.