India’s Market Potential and Trade Relationship with Canada
India’s economy is expanding rapidly, fueled by a young workforce and increasing demand for goods and services. The country’s goal of becoming a “developed nation” by 2047 means major investment in infrastructure, digital industries, and manufacturing. Despite recent political tensions, trade between Canada and India remains strong, with bilateral trade in goods reaching $12.7 billion in 2023 and services trade valued at $17.3 billion.
According to Export Development Canada (EDC), Canada is a key supplier of lentils (53% of India’s imports), bituminous coal, potassium chloride, newsprint, and diamonds. Industries with strong potential for Canadian exporters include:
- Infrastructure and clean technology (carbon capture, water treatment)
- Artificial intelligence and digital services (gaming, IoT)
- Renewable energy (wind, solar, hydroelectric)
- Agri-tech and food processing (farm mechanization, supply chain)
- Electric vehicles (EVs) (battery storage, charging tech)
- Healthcare and medical devices
- Advanced manufacturing (pharmaceuticals, robotics)
Challenges and Business Environment
While India’s ranking on the Ease of Doing Business Index has improved from 130th (2014) to 63rd (2019), Canadian businesses should prepare for:
- Price-sensitive competition from both local and international players
- Regulatory complexity and high tariffs that may shift unpredictably
- Undeveloped infrastructure in some regions
- A relationship-driven business culture, where local partnerships are critical
Leveraging Local Partnerships
“Indians use personal relationships to build mutual trust. This habit extends to business to a degree that’s less common in Canada. The relationship-driven nature of Indian business culture is why local partners can be critical, especially at the market-entry stage.” – EDC
Having an Indian partner is particularly important for industries like agriculture, pharmaceuticals, and manufacturing, where navigating regulations and supply chains requires local expertise. However, sectors like AI, IoT, and advanced manufacturing rely more on technology and price competitiveness than local networks.
The Three Ps: Top Tips for Doing Business in India
Patience – Market entry can take 3 to 5 years before securing a contract.
Presence – Face-to-face meetings and local offices help establish credibility.
Price – India is highly price-competitive, but Canada’s reputation for quality offers an edge.
How EDC and Canada’s Trade Network Can Help
Export Development Canada (EDC) and the Trade Commissioner Service (TCS) provide financial support, market intelligence, and networking opportunities for Canadian businesses entering India.
“To help Canadian companies take advantage of opportunities in the region, EDC is increasing our investment in the Indo-Pacific, including India. We’ve had representations in Delhi since 2005 and Mumbai since 2007, where our teams focus on creating new pathways for Canadian companies.”
