India and Canada have a huge trading partnership, and tensions between the two countries show no signs of easing and continue to grow. The controversy deepened after Khalistani terrorist Hardeep Singh Nijjar was murdered in Canada. As tensions between the two countries increase, so does the likelihood that trade between them will be affected. Tensions are particularly heightened among those companies in which Canadian pension funds invest. These include Kotak Mahindra Bank and online food delivery platform Zomato.
Canadian investments in these sectors in India
Canadian pension funds have significant investments in India and have large stakes in many of the country’s largest companies. CPPIB has significant investments in infrastructure, renewable energy, IT and financial services companies in India. According to reports, the company invested Rs 6,141.6 crore in Kotak Bank, while Canadian pension funds invested approximately Rs 2,778.1 crore in Zomato for a 1.15% stake. Apart from this, Delhivery Ltd and FSN E-Commerce Ventures Ltd also received significant investments.
Pension fund money is also invested in these companies!
According to reports, Canadian pension funds have also invested in many other Indian companies, including online payment service giants Paytm, Nykaa, Indus Tower, etc. However, despite rising diplomatic tensions between Canada and India, the Canadian fund’s domestic holdings were worth about Rs 1.98 billion as of September 30, 2024, and judging from this figure, CPPIB does not appear to be in a rush to exit at the moment. However, over the past year, it appears to be reducing its holdings in Indian stocks.
A report released by the Confederation of Indian Industry (CII) last year showed that more than 30 Indian companies are operating in Canada, and their investments in Canada amounted to Rs 40,446 crore. More than 17,000 people are employed through these enterprises. The R&D expenditures of these companies are also said to have reached 700 million Canadian dollars.
600 Canadian companies doing business in India
Reports say that around 600 Canadian companies are doing business in India and if we talk about imports and exports, the trade volume between the two countries is huge. Bilateral trade between India and Canada was US$8.3 billion in fiscal year 2022-23, rising to US$8.4 billion (approximately Rs. 70,611 crore) in fiscal year 2023-24. However, India’s imports from Canada increased to $4.6 billion during the period, while exports declined slightly to $3.8 billion.
According to AsiaPacific.ca, most investments by Canadian pension funds in India from 2013 to 2023 will be concentrated in real estate (more than CAD 3.8 billion), financial services (more than CAD 3 billion) and industrials. Transportation (approximately C$2.6 billion). Significant investments have also been made in infrastructure and renewable energy.
Trading something?
In terms of import and export goods between the two countries, India exports gems, jewelery and precious stones, pharmaceutical products, ready-made garments, machinery and equipment, organic chemicals, light industrial products, steel to Canada. India, on the other hand, buys paper, wood pulp, asbestos, potash, scrap iron, copper, minerals and industrial chemicals from Canada.
