Why doing business in India is favored by Canadian companies?

1
Indian marketplace A key business opportunity
for Canada
Why doing business in India is favored by
Canadian companies?
A history of people-to-people ties, pluralism,
economic engagement, and democracy underpins the
long-standing India and Canada business
relations. Increasing import-export with the
energetic Indian trade services and bringing into
force the civil nuclear cooperation agreement in
2013, buried the troubled history between the
two countries that was set in motion due to
Indias 1974 and 1998 nuclear tests enabled by
Canadian technology and uranium.
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Following numerous challenges and agreements,
Canada India relations have opened doors to the
future of global trade and business. Both
countries are moving forward to build this
critical relationship in the direction of
bilateral trade and geopolitical
consequences. Canada India relations Canada and
India share commonalities in Parliamentary
structure and procedures. They enjoy a
partnership intertwined in many fields such as
finance, education, agriculture, IT, and
infrastructure. More than 600 Canadian companies
have made a mark in India, and are actively
pursuing business operations in the Indian
market. Canadas diaspora in the Indian market
includes prominent names like Sun Life Financial
Inc., McCain foods, Fairfax Financial Holdings
Limited, Magna International Inc, Apotex
Pharmachem, and so on. The Canadian business also
offers a platform to Indian entrepreneurs and
easy access to the largest market in the world
present next door. As the third largest startup
ecosystem in the world, India hunts for
innovative approaches to problems across various
sectors. Canada through its Startup Canada
initiatives offers multiple avenues to Indian
entrepreneurs that can also benefit their
economies. Current scenario of Canadian services
in India At the policy level, both countries are
enthusiastic to explore their next steps in
negotiations regarding a Comprehensive Economic
Partnership Agreement and a Foreign Investment
Promotion and Protection Agreement. As Canada is
a critical partner for the economic development
of India, Indo-Canadian Business Chamber (ICBC)
is focused on enhancing the bilateral
relationship and promoting areas of mutual
interest between India and Canada. On similar
lines, the ICBC mentioned its agenda to
strengthen the economic ties between India and
Canada at the G20 Summit in India. In 2022, the
India-Canada Comprehensive Economic Partnership
Agreement (CEPA) negotiations were relaunched
and an interim agreement or Early Progress Trade
Agreement (EPTA) was considered to provide
commercial gains to Canadian and Indian trade
services. Moreover, initiatives such as the
India-Canada Centre for Innovative
Multidisciplinary Partnerships to Accelerate
Community Transformation and Sustainability
(IC-IMPACTS) have boosted the research
collaboration and partnerships between the two
countries.
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Priority sectors for Canadian companies In recent
years, both countries are working closely on
multilateral levels in a number of areas of
mutual importance that include the pressing
global challenges such as global warming and
sustainable development. With the exponential
rise of the remote and hybrid working models in
India, immigration of Canadian investment into
the Indian marketplace has increased steadily in
information technology, telecommunications, and
software services. Owing to the ease of doing
business in India, Canadian investors dominated
the banking, insurance, and financial services
sectors, as also the automobile, engineering,
energy, education, life sciences, and consultancy
services. Canada has prioritized its sectors and
seeks bilateral cooperation as India moves
forward in 2023 and beyond. Building remote
teams, tapping the right resources, and
recruiting high-caliber and skilled talent have
restructured the business models. Human resource
outsourcing is seen as a strategic advantage for
the growth of Canadian services in India as
there is plenty of talent in India. What are the
top opportunities in Indias infrastructure
services for Canada? The Canadian government has
a strategic advantage in the Indian marketplace,
particularly in infrastructure and green energy
projects. Canadian investors are supporting the
expansion of sustainable urban development in
India, planned by the government under the
initiatives such as Smart Cities and Skill
India. Canada is weaved into Indias growth story
owing to their investments in Indias growing
infrastructure. For instance, Fairfax invested
321 million dollars into the Bengaluru
international airport in 2016. Since then, other
Canadian investment groups like Brookfield have
started looking into retail and commercial real
estate. Though not an early investor (only the
23rd biggest investor), Canada is betting on the
dynamic growth of India. This was proved by the
whooping 40.63 of the total FDI investments in
infrastructure and other services from Canada to
India. Why setting up a business in India, a
profitable idea for Canada?
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Indias openness to the world is a big part of
what makes India a favorable place to invest and
expand any services. The Government of India has
facilitated various policies to make India
stronger and more competitive in the business
world. India has improved its ranking by 53
positions in the last two years in the World
Banks Ease of Doing Business ranking. As per the
World Investment Report 2022, India was ranked
the worlds eighth major FDI recipient of the
year 2020, with the automobile, IT, and
telecommunication services being the major
recipients. The advent of data analytics,
technology, and high-speed connectivity have
steered collaborations in various technology and
health sectors fuelling cross-border MA of
around 83 to 27 billion dollars. The cherry on
the cake of these major investments was the 1
billion dollar investment in Indian telecom
Bharti Airtel by Google for access to
smartphones, networks, and the cloud. The
availability of skills and resources for Canadian
business growth Canadian businesses confidently
approach an emerging marketplace like India to
expand their services in India. Despite the shift
in orientation towards remote working and hybrid
working in the post-pandemic period, Canada takes
advantage of Indias vibrant market of various
sectors such as infrastructure, IT, clean
technologies, life sciences, automobiles,
healthcare, education, agriculture, and much
more. Canada identified the right skills and
resources from varied backgrounds such as
digital marketing, designing, engineering, data
analytics, research, and clinical data
management to foster precise relationships in
India. The ease of doing business and the
availability of niche skills in an opportunistic
market have reaffirmed the breadth and scope of
Canadian services and deepened their business
roots in India. Easing FDI regulations, a young
and large English-speaking labor workforce, and
exceptionally skilled resources have enhanced key
partnership prospects and broadened engagement
with the world. Among the most important of those
partnerships is the one India has with Canada.
MNCs, SMEs, and startups from Canada positively
view the Indian marketplace as an investment for
rapid business growth.