The Hindu Business Line : Will it be Indian summer in Canada?

The Indian Canadian community has not only established itself in the economic and business arena but also interwoven itself into Canada's social and cultural fabric.

recently in Canada

CANADA is all set to be an important player in the Indian business scene in the months and years ahead. While it may have missed out on the early opportunities in the Indian market, it is focussed on making up for lost time by concerted efforts, both political and economic. The Canadian administration in Ottawa and its diplomatic arms are but one aspect of the strategy to tap into India's burgeoning market.

Several major Canadian corporations having ties with India — some going back decades — are eager to further tap this huge emerging market.

These businesses are not confined to information technology but cover a wide range of sectors: science and technology, infrastructure, films, services, and airport design and modernisation, to mention just a few.

Ottawa has made it clear that the vast Indian Diaspora in Canada is a major asset which will be tapped fully.

The Indian Canadian community — even the larger community that includes peoples of Indian origin — done extremely well and has not only established itself in the economic and business arena but is also interwoven itself into Canada's social and cultural fabric.

The community also wields considerable political clout, in some instances at the provincial level.

Complementing this is the role of such institutions as the Canada-India Business Council, its provincial chapters included, and the Indo-Canadian Chamber of Commerce, comprising dedicated members of the community who are spending their energies and resources to promote the bilateral relationship.

No one in Canada is under any illusion about the kind of challenges ahead, especially for a country that seems to have missed the first "beat" for a number of reasons, including a reluctance to showcase itself. "Canada is more than horses, buggies, trees and mountains. It is a modern economy," quips Dr John Wiebe, President and CEO of the Asia-Pacific Foundation of Canada, Vancouver.

At the same time, there is the realisation that there is "still room" for Canada in a number of areas that would go beyond the information technology realm to include higher education and environmental technology. And it is argued that, at a time when there is a lot of hoopla in the US about outsourcing, India can look to Canada for "near-shoring".

There is a tendency in many quarters to look beyond the current numbers in two-way trade or investment which, in the context of India, seem quite pathetic. Forget about the two-way trade Canada has with the US, Ottawa's C$2-billion-plus trade with India seems like nothing, compared to that trade with Japan, China, Taiwan and South Korea.

India-Canada trade analysts are, however, making the point that Canada is quite big on services and this aspect is not quite reflected in the statistics. For instance, one estimate is that the worth of Canada's services transactions with India is in the neighbourhood of C$400 million.

The same goes for Canadian investments in India — put at around C$140 million, with Indian investments in Canada said to be worth C$20-30 million.

It is realised that the economic interaction between India and Canada is "low", nowhere near the overall potential.

It is also acknowledged that economic relations with India may not turn out to be on the same lines as those with Japan; and few are under any illusions about Canada becoming the dominant economic player in India.

However, over a period, Ottawa "will have a built up niche market," it is felt.

In its bid for a piece of the Indian market, Official Ottawa is also making it clear, as are the individual provincial authorities and business houses, that every available resource will be taken advantage of, which is basically to keep the cost factor in perspective.

In other words, Canada will be making known its presence in India, not just from Canada per se but from any of its ventures and operations overseas, notably from the Asia-Pacific region.

Some of the provinces — Ontario, Quebec, Alberta and British Colombia — are making every effort to not only get into the Indian market but also to showcase what they have, to enable Indian entrepreneurs get a piece of the action going in this part of the world.

Many from India have successfully set up shop in Canada, and the efforts of the provinces will continue.

For instance, officials in Quebec are quick to stress the province's top-class research environment in hi-tech; senior officials in Alberta are eager to "get on" with India in a number of areas, including film production and cooperation on technologies for exploration of oil and natural gas.

In fact, several Indians, during the course of an invitation visit, pointed to Canada's top-rated universities that would match any in the US or elsewhere in the West.

Interestingly, at a time when there is a lament in the US of students not being sufficiently interested in science or engineering, top Canadian professionals and officials say this is not the case in their country.

There are many aspects of the Canadian education scene that could be attractive for Indian students, apart from the fact that Canada has to its credit some top quality institutions specialising in different fields.

It is pointed out that even American nationals are looking to the North, for the simple benefit of getting quality education for less, much less, money. And for foreign students, academics are trying to impress upon the authorities the need to support their stay in Canada.

At the provincial level there is the keen desire to showcase the region's track record in a number of fields, including science and technology and higher education.

For instance, the Vancouver Airport Services Corporation — which pushes the importance of themes and the "distinctive sense of place" as its major strengths — is bidding for the mega projects relating to the expansion of airports in Mumbai and New Delhi, fully aware of the tough competition it will face from Asia-Pacific and Europe.

In all this interest in the Indian market and letting India know where Canada is coming from, there is also one aspect that Ottawa or the provincial capitals quite readily admit: The shortage of labour, skilled people and professionals, thereby throwing open the possibilities for Indian nationals seeking opportunities in Canada.

Obtaining Permanent Residency in Canada is not a guaranteed process, but officials explain the difference in the systems worldwide, with Canada opting for the `Points System' as one of its advantages.

Given the strengths and weaknesses of the two systems in terms of business and economics, the bottomline seems to be quite clear-cut, especially from a Canadian point of view — that being laidback or `shy' will get one nowhere; and that in an aggressive emerging market like India, Ottawa — in all its different manifestations — would have to look sharp and keep its eyes focussed and ears tuned to unfolding events and developments.