India a potential sweet spot for Canadian firms in "hot" sectors
OTTAWA, May 7, 2013 /CNW/ - Canadian commercial activities with India pale in comparison with the scale of our trade and investment with our traditional, advanced economy partners.
"But Canadian firms are world leaders in some of India's "hottest" economic sectors. Canada's demonstrated strengths in other markets could be adapted and applied to India's needs."
A new Conference Board of Canada report for its Global Commerce Centre identifies the sectors that offer both high growth potential and relative openness to Canadian businesses. The sectors and their related supply chains that fall in the "sweet spot" include:
- food products, and
- financial services.
As the world's second most populous country, with a young population and a large and growing middle class, India offers tremendous opportunities. India's economy grew rapidly over 2003-07, averaging an impressive 9 per cent real annual growth. It has slowed down since, averaging 7 per cent annually over 2008-11 and 5 per cent in 2012.
Only a meager 0.5 per cent of Canada's goods exports go to India. Two-way Canada-India trade totals less than C$5 billion, mostly in goods. Similarly, Canada's direct investment flows to India are negligible. However, as Canada's trade with the U.S. stagnates, Canada's trade with fast-growing markets is starting to take off.
Canada and India are negotiating a trade deal, ambitiously slated for completion in 2013. Ottawa has identified core economic opportunities in India in the energy, agriculture, infrastructure, and education sectors.
The publication, Hottest Prospects for Canadian Companies in India, is part of the "Tool Kit for Growth Markets" series, published by the Conference Board's Global Commerce Centre. The Centre provides evidence-based tools to help companies and governments respond successfully to the trends reshaping the global business environment. The publication is available at www.e-library.ca.
SOURCE Conference Board of Canada