India’s Commerce and Industry Minister, Piyush Goyal, has announced that the country is in talks with Canada to discuss a potential Free Trade Agreement (FTA) between the two nations. The move is aimed at boosting trade ties between the two countries, and could have significant benefits for both economies.
Speaking to the media, Goyal said that India is looking to strengthen its economic ties with Canada, and is exploring all possible avenues to increase trade and investment between the two nations. He added that the Indian government is committed to creating a conducive environment for businesses to grow and thrive in the country, and is working towards promoting ease of doing business in India.
The talks between India and Canada come at a time when both countries are looking to boost their economic growth and trade ties with other nations. India is currently in the process of negotiating several FTAs with other countries, including the United Kingdom, the European Union, and the United States. The Canadian government, meanwhile, is looking to diversify its trade relations and reduce its dependence on the United States, which is currently its largest trading partner.
The potential FTA between India and Canada is expected to cover a wide range of issues, including trade in goods and services, investment, intellectual property rights, and dispute settlement mechanisms. The two sides are also likely to discuss issues related to market access, tariffs, and non-tariff barriers to trade.
India and Canada have a long history of trade relations, dating back several decades. However, the trade between the two countries has been relatively modest in recent years, with the total bilateral trade between India and Canada standing at just $8.4 billion in 2020. There is, therefore, significant scope for increasing the trade between the two countries, and a potential FTA could help achieve this objective.
The talks between India and Canada are also likely to focus on ways to promote investment and collaboration between businesses in the two countries. Canada is home to several large corporations, including BlackBerry, Bombardier, and Magna International, which could be potential investors in India. Similarly, India is home to several large corporations, including Tata, Reliance, and Infosys, which could be potential investors in Canada.
The potential FTA between India and Canada is expected to be beneficial for both countries, as it could help increase trade and investment, create jobs, and boost economic growth. India is one of the fastest-growing major economies in the world, with a GDP of $2.9 trillion in 2020. Canada, meanwhile, is a developed country with a GDP of $1.6 trillion in 2020.
The talks between India and Canada are still in the early stages, and it is unclear when a potential FTA will be finalized. However, both sides have expressed their commitment to strengthening their economic ties, and the talks are expected to continue in the coming months. In the meantime, India and Canada have already taken a number of steps to further their economic partnership, such as increasing bilateral trade and investments. India is also looking at ways to improve market access for its goods and services in Canada, including by exploring the possibility of a free trade agreement.
In conclusion, the potential Free Trade Agreement between India and Canada could be a significant development for both economies, as it could help increase trade and investment, create jobs, and boost economic growth. The talks between the two countries are still in the early stages, and it is unclear when a potential FTA will be finalized. However, the talks are expected to continue in the coming months, and both sides are committed to exploring all possible avenues to strengthen their economic ties.
