Frictions in India-Canada ties

General Studies Paper 2

Introduction

• Canada and India have long-standing bilateral relations built upon shared traditions of democracy, pluralism and strong interpersonal connections. The deep cultural and political ties between Canada and India are strengthened by a growing network of official dialogues, agreements, memoranda of understanding and working groups.

India-Canada Bilateral Relations

• India established diplomatic relations with Canada in 1947.
• Bilateral Mechanisms: Both sides pursue bilateral relations through the dialogue mechanisms such as Ministerial level- Strategic, Trade and Energy dialogues; Foreign Office Consultations; and other sector specific joint working groups (JWG).
• Commercial relations: Both sides are engaged in technical negotiations for a Comprehensive Economic Partnership Agreement (CEPA) including trade in goods, services, investment, trade facilitation etc.
• Major Items of Indian Exports are: Medicines, Garments, diamonds, chemicals, gems and jewellery, petroleum oils, made-up, sea food, engineering goods, marble and granite, knitted garments, rice, electric equipment, plastic products, etc.
• Major items of Canada’s export to India are: Pulses, fertilizers, newsprint, aircrafts & aviation equipment, diamonds, copper ores and concentrates, bituminous coal, wood pulp, nickel, unwrought aluminium, asbestos, God, cameras, lumber, ferrous waste, etc.
• Nuclear Cooperation: Indo-Canadian relations deteriorated in the wake of India’s Smiling Buddha nuclear test of May 1974. However, in June 2010, a Nuclear Cooperation Agreement (NCA) with Canada was signed and came into force in September 2013.
• Indo-Canadian Science and Technology cooperation:
• Department of Biotechnology under IC-IMPACTS program implements joint research projects in health care, agri-biotech and waste management.
• The Department of Earth Science and Polar Canada has started a programme for the exchange of knowledge and scientific research on Cold Climate (Arctic) Studies.
• Space: ISRO and Canadian Space Agency (CSA) signed two MOUs in the field of exploration and utilisation of outer space in October 1996 and March 2003.
• ANTRIX, the Commercial arm of ISRO, has launched several nanosatellites from Canada.
• ISRO in its 100th Satellite PSLV launched on 12 January 2018, also flew the Canadian first LEO satellite, from the Indian spaceport Srihari Kota, Andhra Pradesh.
• Security and Defence: India and Canada collaborate closely in international fora, particularly through the UN, Commonwealth and G-20.
• Agriculture: The first meeting of the JWG set under this MoU was held in New Delhi in 2010, which led to the creation of three sub-groups on knowledge exchange in emerging technologies; animal development and agricultural marketing.
• Education: Education is a key area of mutual interest. Recently India became the top source of foreign students studying in Canada.
• People-to-People ties: Canada hosts one of the largest Indian diasporas in the world, numbering 1.6 million (PIOs and NRIs) which account for more than 4% of its total population.
• Cultural Exchanges: Canada was the Country of Focus at the 48th International Film  Festival of India held in Goa in November 2017. There is also an India – Canada Coproduction Agreement in films.

Challenges

• India’s structural impediments: India still has to overcome structural impediments such as complex labour laws, market protectionism, and bureaucratic regulations.
• Inadequate trade: While India–Canada economic relations have made some progress, Canada remains an insignificant trading partner for India.

Way ahead

• India-Canada relations have struggled to prosper, despite the two countries sharing various complementarities such as their democratic character and association in the Commonwealth. India must foster a deeper understanding of Canada and the potential it holds for India.