Why is Canada important for India? These two things are imported

India was Canada's 9th largest business partner in the year 2022. In the financial year 2021-22, there was a trade of $7 billion between the two countries. At the same time, in the first 6 months of the current financial year, there has been a trade of $ 8.16 billion between the two countries.

Instead of decreasing, the tensions between India and Canada are increasing. First both the countries suspended diplomats and now India has suspended visa services for Canadian citizens. In such a situation, it is being said that India has taken the biggest step so far against Canada. In such a situation, trade relations between the two countries may also be affected. India imports pulses and fertilizers from Canada on a large scale. If relations between the two countries continue to deteriorate like this, inflation may increase in India. Especially the prices of pulses may rise. In such a situation, amidst the ongoing diplomatic deadlock, today we take a look at the trade relations between India and Canada.

Along with food items, India also imports mineral fuel, mineral oil and potash from Canada. Last year, India's trade with Canada totaled $8 billion, which was 0.7% of India's total trade with the world at $1.1 trillion. The special thing is that bilateral trade has also been quite equally balanced between the two countries. For example, in the year 2022-23, India will import approximately $4 billion from Canada and also export $4 billion from Canada, which is almost equal.

India's share is 2 percent

India's imports from Canada include mineral fuels, mineral oils and their distillation products. Apart from this, India also imports wood or other fibrous cellulosic materials from Canada, from which paper or paperboard is made. Canada also exports edible vegetables and tubers to India. Canada has exported approximately $3,306 million to India from April 2000 to March 2023, making it the 18th largest foreign investor in India. Also, Canadian investment in India is about 0.5 percent of the total FDI. Whereas, India's share in Canada's global market is 2 percent.

Price may increase

India imports things like pulses, coal, newsprint, fertilizer, wood, mining products, potash and aluminum from Canada. Apart from this, India also buys products related to agriculture and horticulture from Canada. The special thing is that India imports the largest quantity of lentils from Canada. Right now pulses are being sold very expensive in India. If trade between the two countries is affected, the price of pulses in India may increase.

Jobs and business will also be affected

It is not the case that India only imports from Canada, but also exports on a large scale. Canada buys medicines, diamonds, gems, garments, auto parts, electronic items and aircraft equipment from India. India has made significant investments in Canada. At the same time, a large number of Indians are also working in Canada. If relationships deteriorate, jobs there will also be affected.