In the last three weeks, we talked about South Korea, Japan, and the countries that collectively form the Association of Southeast Asian Nations. Today, we will consider India's place in Canada's recently released Indo-Pacific Strategy (the "Strategy").

The purpose of this fourth and final bulletin of the series is to discuss the importance of India in the eyes of the federal government and in light of the Strategy.

The Global Importance of the Indo-Pacific Region in General and of India in Particular

The Strategy recognizes that the Indo-Pacific region – composed of forty economies, over four billion people, and $47 trillion in economic activity – is the world's fastest-growing region. In this region, India is a country of more than one billion people, with a gross domestic product of $4 trillion, and that is Canada's thirteenth largest trading partner. In 2021, Canada imported $46 billion worth of goods from India and exported $3 billion worth of goods. Given its size, economic growth prospects, and demographic composition, India must be a central pillar of any Indo-Pacific strategy for Canada.

Canada's Strategic Objectives and Initiatives in the Indo-Pacific Region

Canada has five strategic objectives in the Indo-Pacific region: (i) promoting peace, resilience, and security; (ii) expanding trade, investment, and supply chain resilience; (iii) investing in connecting people; (iv) building a sustainable and green future; and (v) cementing Canada as an active and engaged partner in the Indo-Pacific region.

Expanding Trade, Investment, and Supply Chain Resilience

Among the initiatives set out in the Strategy, there are two that address the issue of supply chain resilience and that are worth mentioning in relation to India:

  • The desire of Canada to advance shared interests and supply chain resilience with partners, including through greater Canadian involvement and alignment with original initiatives such as the Australia-Japan-India Supply Chain Resilience Initiative; and
  • Strengthen Canada's science, technology, and innovation partnerships with key economies, including India, to support international co-innovation projects, commercialization-oriented research, and development partnerships for small and medium-sized Canadian businesses with Indo-Pacific partners.

How Canada Is Engaging With India

The Strategy states that India's growing strategic, economic, and demographic importance in the Indo-Pacific makes it a critical partner in Canada's pursuit of its objectives. In its engagement with India, Canada will:

  • Grow economic ties, including through deeper trade and investment, as well as cooperate on building resilient supply chains;
  • Seek to expand market access by concluding an Early Progress Trade Agreement ("EPTA") as a step towards a comprehensive economic partnership agreement;
  • Create a Canada-India desk within the Trade Commissioner Service to promote the implementation of the EPTA for businesses and investors looking to enter the Indian market, or for those partnering with Indian businesses;
  • Invest in and connect people, including by bolstering Canada's visa-processing capacity in New Delhi and Chandigarh;
  • Support academic, educational, cultural, youth, and research exchanges;
  • Accelerate cooperation in the fight against climate change, in protecting the environment, and in deploying green technologies; and
  • Send enhanced Team Canada trade missions in priority sectors of mutual interest, such as renewable energy and clean technology.

The Strategy adds that "India's strategic importance and leadership—both across the region and globally—will only increase as India—the world's biggest democracy—becomes the most populous country in the world and continues to grow its economy. Canada will seek new opportunities to partner and engage in dialogue in areas of common interest and values, including security, and the promotion of democracy, pluralism and human rights."

Provincial Initiatives

The Québec Strategy

The province of Québechas created a separate provincial strategy for the Indo-Pacific region. The Québec strategy, titled the "Pathway to Economic Growth: New Ambitions for Québec", recognizes that the Indo-Pacific region has become the new global economic centre of gravity. The Québecstrategy states frankly that the province's interests in the region as a whole are primarily economic and that it aims to enhance its relations with India, given that the country is a leader in the information technology sector and is the world's third-largest pharmaceutical producer.

British Columbia's Trade Initiatives

The government of British Columbia is acutely attuned to India's remarkable growth trajectory. The province has recently released a trade diversification strategy that identifies India as a market where British Columbia is primed to channel its efforts into amplifying and enriching trade relationships. British Columbia's goal is to nurture growth for its products, services, and investment opportunities. Accordingly, British Columbia recognizes India as a top priority in its quest to diversify their trade plan, which aligns with the federal Strategy.

Ontario's Trade Initiatives

Ontario is home to Canada's largest Indian population, boasting over 900,000 individuals of Indian origin or descent and hosting 69 Indian companies. Conversely, more than 40 Ontario-based companies have a presence in India. In this environment, the Ontario Minister of Economic Development, Job Creation, and Trade has acknowledged the extensive history of Ontario and India as economic partners as well as allies. The Ontario government recently concluded a successful trade mission to India, aimed at fortifying economic partnerships and attracting new investments in key sectors such as manufacturing, technology, and life sciences. While there, Ontario's delegation engaged with prominent Indian companies and effectively showcased the province both as a dynamic hub of innovation and an optimal destination for companies seeking to invest.

Conclusion

The Indo-Pacific region is the new economic centre of gravity in the world, with South Korea, Japan, India, and the ASEAN countries taking on an increasing importance. As the region becomes even more significant in the years ahead, Canada is a natural partner to the region's existing and emerging industries. This is particularly the case given Canada's enormous quantities of natural resources, including critical minerals, as well as its assets in artificial intelligence and robotics.

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