PRIME Minister Stephen Harper and Indian Prime Minister Narendra Modi on Thursday welcomed 16 commercial agreements and announcements by Canadian and Indian companies and organizations, which will help create jobs in both countries. The commercial agreements and announcements have a combined value of over $1.6 billion.
The announcements cover a wide range of sectors, including aerospace and defence, education, energy, mining, infrastructure, sustainable technologies, and information and communications technology.
Harper said: “It is exciting to see the commercial deals being signed between Canadian and Indian firms today, which will generate jobs and economic growth in both countries. The untapped trade potential between Canada and India is enormous. Canada has what India needs and vice-versa. Recognizing this, Prime Minister Modi and I are busy working to advance bilateral agreements that will further increase two-way trade and investment flows.”
With bilateral merchandise trade totalling over $6.3 billion in 2014 and bilateral service trade at over $1.5 billion in 2013, a market of more than 1.2 billion people, and a predicted economic growth of 7.5 per cent in 2015, India represents exciting opportunities for Canadian businesses.
The stock of two-way foreign direct investment (FDI) between Canada and India totalled approximately $4.4 billion in 2013. Of this, the stock of FDI in Canada from India is nearly $3.8 billion and the stock of Canadian FDI in India stood at $613 million.
Canada has recognized the importance of India for Canadian businesses, and has increased trade resources in India to help facilitate business connections and increase trade between the two nations. Canada’s trade office network now includes close to 50 trade commissioners in eight different locations across India, and two Export Canada Offices with four representatives.
India is a priority market in Canada’s Global Markets Action Plan, which seeks to increase the number of Canadian companies exporting abroad.
THE following commercial agreements and announcements were welcomed by Prime Minister Stephen Harper and Narendra Modi, Prime Minister of India. The deals, which are valued at over $1.6 billion, cover a wide range of sectors, including aerospace and defence, education, energy, mining, infrastructure, sustainable technologies, and information and communications technology.
Air Canada announced that it will reinstate its direct Toronto-Delhi flight on Boeing 787 Aircraft commencing in November 2015, making it easier and faster for visitors and business people to travel back and forth between Canada and India.
AMP Solar Group Inc.
Ontario-based AMP Solar Group signed a memorandum of understanding with SUN Group to jointly develop, own and operate over 500MW of solar assets in India over the next three years. This will result in the investment of over $1 billion into new energy infrastructure in India.
Quebec-based Azzimov Corporation, an alumnus of the Government of Canada’s Trade Commissioner Service’s Canadian Technology Accelerators initiative, signed a joint venture partnership with O4 Digital Media to offer India’s first and largest online video shopping platform. The estimated value of this agreement is $50 million over the next three years.
Caisse de dépôt et placement du Québec (CDPQ)
Quebec-based institutional fund manager CDPQ announced it will open a Mumbai office in 2016 as part of its push to expand its presence in selected markets and invest strategically, in line with the core trends driving the world economy.
Saskatchewan-based Cameco signed an agreement with India’s Department of Atomic Energy to supply over seven million pounds of uranium to India over the next five years. At today’s uranium price, this contract is valued at over $350 million. The supply contract was made possible by the Canada-India Nuclear Cooperation Agreement which came into force in September 2013.
Canada Pension Plan Investment Board (CPPIB)
The CPPIB announced that it plans to open a Mumbai office in October 2015. As of December 31, 2014, CPPIB managed over $238 billion in investment assets for the Canada Pension Plan on behalf of 18 million Canadians.
Ontario-based Canadian Solar announced that it will invest in a facility for solar cells and modules in India. This entails an investment of $70 million.
Ontario-based Clearford announced the following four projects:
- a memorandum of understanding with Infrastructure Leasing & Financial Services Limited under which the Clearford One Sanitation system will be used to collect and treat wastewater in Gujarat, pursuant to the Government of India’s commitment to provide toilets and bathrooms to every household;
- a memorandum of understanding with IVRCL Ltd. that will see collaboration on joint sanitation projects. The first proposed project is a sewage treatment project for Jawaharlal Nehru Technological University new campus in Kalagiri;
- an agreement with St. Xavier’s College to build a sewage treatment plant for its campus in Kolkata; and,
- an agreement with the Indian Institute of Technology for a sewer treatment pilot project at its Kharagpur campus.
CMC Electronics Inc.
Quebec-based CMC Electronics Inc. will supply Hindustan Aeronautics Limited with integrated cockpit display systems for India’s new domestically-produced Hindustan Turbo Trainer (HTT-40) aircraft. The deal is valued at $20 million.
Quebec-based Darram Inc. is partnering with the Taj Group to open a five-star health spa in 2016 near Rishikesh. This eco-friendly destination resort, with an investment of $30 million, will implement a joint Indo-Canadian design that adheres to the world’s best sustainable development practices.
Ontario-based Fanshawe College signed a summer program agreement with IILM Institute for Higher Education for 90 graduate students to travel to Fanshawe College in July 2015 to undertake a four-week summer program in Digital Marketing and Google Analytics.
The Times of India Group signed an agreement to invest $29 million in SKILLSdox India Private Ltd., a subsidiary of Ontario-based SKILLSdox, in order to direct millions of new learners into SKILLSdox’s online educational marketplace, opening up online education opportunities across India.
Tata Consultancy Services Co-Innovation Network
Tata Consultancy Services Co-Innovation Network announced that it will set up a new innovation lab in Toronto. The investment of $100 million is expected to help facilitate the commercialization of new technologies.