India-Canada diplomatic row unlikely to affect businesses or students much

Last week, the India-Canada relations hit a new low when both the countries expelled six diplomats based on allegations that are difficult to verify at this point of time. The interests of the businesses or our students are, however, unlikely to be affected much.

- T N C RAJAGOPALAN

There are mild concerns in both the countries on how the worsening relations will impact the trade and economic relations. At about $16 billion of imports plus exports, the overall impact in both the countries is quite insignificant. Both countries have alternate sources from where their requirements can be met even if the bilateral trade is disrupted in any way. India does not have much investment in Canada but about 600 companies from Canada have invested in India. Many institutional investors from Canada, including the Canadian Pension Fund, have invested in our equity markets. They are unlikely to feel jittery and pull out their funds because of the recent deterioration in political relations. So, it is the potential to expand the trade and economic relations that may cause some anxieties. Here again the concerns are mild because the businesses do not see any threats to their trade or investment prospects. The businesses in Canada are also