In a growing diplomatic standoff, India has suspended visa services in Canada, prompting Canada to “adjust its staff presence in India.” Amidst this crisis, let’s delve into the trade ties between India and Canada.
India-Canada Trade Snapshot
During the last fiscal year (2022-23), India’s total trade with Canada reached $8 billion, constituting a modest 0.7% of India’s overall global trade, which stood at a staggering $1.1 trillion. This proportion has remained consistent over the past five years, despite fluctuations in import and export figures, notably due to the disruptions caused by the Covid-19 pandemic.
Furthermore, bilateral trade has maintained a nearly even balance. In 2022-23, imports and exports both stood at approximately $4 billion, resulting in a small trade surplus of $58 million for India.
Key Imports and Exports
India’s imports from Canada are primarily concentrated in three categories, accounting for a substantial 46% of the total import value:
1. Mineral fuels, mineral oils, and products derived from distillation, including bituminous substances and mineral waxes.
2. Pulp made from wood or other fibrous cellulosic materials, as well as waste and scrap of paper or paperboard.
3. Edible vegetables, along with specific roots and tubers.
Conversely, India’s major exports to Canada encompass a more diverse range of products, representing 30% of the total exports. These include pharmaceutical products, articles made from iron or steel, and nuclear reactors, boilers, machinery, and mechanical appliances, along with their components.
Canada holds a vital position in India’s agricultural imports, particularly in two key commodities:
1. Muriate of Potash (MOP): This fertilizer ranks third in consumption in India, following urea and di-ammonium phosphate. India imported 50.94 lakh tonnes (lt) of MOP in 2020-21, 29.06 lt in 2021-22, and 23.59 lt in 2022-23, valued at $1,212.67 million, $990.84 million, and $1,405.31 million, respectively. Canada was India’s leading supplier of MOP in the last fiscal year.
2. Masur (Red Lentil): As a major pulse importer, India received 11.16 lt of masur in 2020-21, 6.67 lt in 2021-22, and 8.58 lt in 2022-23, valued at $622.40 million, $528.74 million, and $655.48 million, respectively. Canada stands as India’s primary supplier of masur, followed by Australia.
Until 2017-18, India was a substantial importer of yellow/white peas, serving as a substitute for chana (chickpea). During the years 2015-16, 2016-17, and 2017-18, India imported significant quantities of yellow/white peas valued at $831.96 million, $1,205.58 million, and $921.10 million, respectively. Canada consistently held the position of the top supplier during these years.
In the current climate of diplomatic tensions, these trade statistics offer valuable insights into the intricacies of India’s trade relationship with Canada.
