India-Canada Diplomatic Tensions unlikely to Impact Textile Trade

The current political crisis started when Justin Trudeau, the prime minister of Canada, claimed that the Indian government may have been involved in the murder of a leader of the Khalistani separatist movement.

Since the economic relationships between India and Canada are motivated by commercial interests, experts say there is little chance that the political tensions will have an influence on trade relations.

The present geopolitical crisis started when Justin Trudeau, the prime minister of Canada, claimed that the Indian government may have been involved in the murder of a Khalistani separatist leader in June.

An Indian official was asked to leave the North American nation. One of the Canadian ambassadors was also expelled by India in retribution.

Ajay Srivastava, co-founder of the Global Trade Research Initiative (GTRI), told the news agency PTI that recent events are not likely to have an impact on the strong trade, economic, and people-to-people relations that exist between the two countries. According to Srivastava, neither nation competes in the same product categories.

The chairman of Mumbai-based Technocraft Industries, Sharad Kumar Saraf, claims that "the bilateral trade is entirely driven by commercial factors. Political unrest is transient and shouldn't have an impact on trade relations.

"Bilateral trade is actually a useful strategy for fostering better political ties. To enhance our bilateral commerce with Canada, India must put forth extra effort, according to Saraf.

A senior official noted that before of the G20 leaders’ summit, India and Canada suspended the free trade agreement negotiations. Mary Ng, Canada's Minister of International Trade, also rescheduled her October trade mission to India last week.