Canadian exporters need to find India’s sweet spots

Source: Globe and Mail via Indian Economic Business News

India accounts for less than 1 per cent of Canada’s trade and investment, according to official estimates. Yet, India accounts for 7 per cent of the world economy today. It is expected to rise to 11 per cent by 2030 and to 18 per cent-almost one-fifth-of the world economy by 2060, according to OECD estimates. So how do more Canadian companies actually start taking advantage of opportunities in fast-growth markets such as India? A good starting point is to identify sectors of the Indian economy that land in the “sweet spot” – they are sizable, dynamic, fast-growing, and present relatively few barriers to Canadian businesses. A new Conference Board study, “The Hottest Markets for Canadian Companies in India,” finds many fast-growing, sizable, profitable, dynamic sectors. So the study’s final list of hottest markets includes only those fast-growth sectors that are relatively open to Canadian business. The final list includes eight Indian service sectors, 10 manufacturing sectors, and eight resources or agricultural sectors. In many of these hot markets, Canada has demonstrated international commercial strengths. These industries include: infrastructure and related activities, the auto sector and supply chain, services. The challenges in India are tremendous, but so are the long-term opportunities. India’s growth prospects are far above the meagre rates seen in Canada’s traditional trade partners. With a free-trade deal in the works, and an investor protection agreement negotiated (though on hold on India’s side), Canada has started toward removing barriers for its companies in India.