India's Envoy Urges Canadian Businesses to Expand Trade Without Waiting for Formal Deal

India's High Commissioner to Canada, Dinesh Patnaik, has delivered a clear message to Canadian businesses: the time to expand trade and investment ties with India is now, without waiting for governments to finalize a formal trade agreement. In a comprehensive interview, Patnaik outlined India's preference for a high-ambition comprehensive trade package rather than limited sectoral agreements, signaling a significant shift in diplomatic and economic relations between the two nations.

A New Approach to Canada-India Trade Relations

Patnaik's comments represent a strategic pivot in how both countries approach their economic partnership. "We are more interested in a comprehensive package than something with low ambition. We want a higher ambition," the High Commissioner stated during his interview. This position marks a departure from previous negotiations that had scaled down to focus on specific industries rather than pursuing a broad economic partnership agreement.

The diplomatic relationship between Canada and India has experienced significant turbulence in recent years. Trade talks that began in 2010 were paused multiple times before being completely shut down by Ottawa in 2023, following allegations that New Delhi was involved in the assassination of a Canadian Sikh activist. However, recent developments indicate a thaw in relations, including Foreign Affairs Minister Anita Anand's visit to India earlier this month, where both countries released a joint statement focused on "renewing momentum towards a stronger partnership."

Immediate Opportunities Beyond Formal Agreements

Patnaik emphasized that businesses shouldn't delay their India expansion plans while waiting for government-level agreements. "A trade deal is something we should not wait for. We should start getting whatever we can, the early gains," he advised. This approach recognizes that significant trade and investment opportunities exist outside the framework of formal agreements, particularly given the complementary nature of the Canadian and Indian economies.

Despite the diplomatic challenges of recent years, trade between the two countries has continued, though Patnaik notes it hasn't reached its full potential. "Trade hasn't slowed down," he observed, but added that "trade has never reached the heights as it should have been, between a G7 country and the fourth largest economy in the world." This gap represents significant untapped potential for Canadian businesses across multiple sectors.

Comprehensive Vision for Economic Partnership

India's vision for the relationship extends far beyond traditional goods trading. Patnaik expressed interest in "interacting in every sector" with Canada through an agreement that encompasses services, education, cultural exchanges, and technological collaboration. "I don't want to reduce trade to only buying and selling, but to this larger economic framework where we have investments, where we have human resource collaborations, scientific research, innovation, high technology — everything," he explained.

This comprehensive approach aligns with both countries' needs to diversify their trade relationships away from over-reliance on the United States. Recent tariff impositions by the Trump administration have highlighted the vulnerabilities of concentrated trade partnerships, making the India-Canada relationship increasingly strategically important for both nations.

Moving Forward with Strategic Partnership

Patnaik's comments come as India has been actively expanding its trade agreements with other countries, including the United Kingdom, Australia, and the United Arab Emirates, with an EU agreement also nearing completion. The High Commissioner noted that if trade talks with Canada hadn't been paused, the two countries might already have a trade agreement in place.

The envoy also addressed historical trade barriers, suggesting that India wants to move past conflicts over issues such as fumigation requirements and pesticide standards. "Trade is basically opening up, not putting barriers. No non-tariff barriers, no sanitary phytosanitary issues," he stated, indicating a willingness to address longstanding concerns that have complicated the trade relationship.

Patnaik framed the relationship in terms of shared values and common interests, describing both nations as "two democracies with complementary economies, open societies, diversity, pluralism, democracy, rule of law, freedom of press — everything that binds us together." He concluded with a call for "an interaction which is much more intense, much more strategic, much more closer than what we have at present," signaling India's commitment to deepening the bilateral relationship across multiple dimensions.