India Canada Biz Digest
 (Delivering news impacting India-Canada economic relations)

Compiled by the High Commission of India, Ottawa 

September 2022
Issue 144

India becoming world’s 5th largest economy no ordinary feat: Prime Minister Modi 

India has emerged as the fifth largest economy in the world and this is not an ordinary achievement, Prime Minister(PM) Narendra Modi said on 8 September 2022. “Recently, India achieved the feat of becoming the world’s fifth largest economy. This achievement gave us confidence to work harder and achieve bigger goals in this remarkable time,” PM Modi said. “This is no ordinary progress. It fills every Indian’s heart with pride. We need to maintain this enthusiasm,” he added.

The Prime Minister was virtually addressing a mega medical camp organised in Olpad area of Surat city in Gujarat when he made the remarks. On 02 September 2022, the International Monetary Fund (IMF) announced that India had surged past the United Kingdom to become the fifth largest economy in the world. The latest change in rankings is based on quarterly gross domestic product (GDP) numbers in current dollars for the period ending December 2021. India increased its lead over the UK in the quarter ending March, IMF data showed.

Prime Minister Modi launches National Logistics Policy (NLP),
strengthen India’s supply chain 

Prime Minister(PM) Narendra Modi, on 17 September 2022, launched the National Logistics Policy (NLP) that aims to bring down the high logistics costs in the country. Speaking at the launch programme, he said it was an “important step towards the making of a developed India”.

PM Modi further said “India is emerging as a manufacturing hub. The world has accepted India as a leader in manufacturing. The National Logistics Policy has helped the manufacturing sector.” He added the policy is the stepping stone performance is the key. “Policy plus performance is equal to growth. Policy can be driving and guiding force and NLP should not be seen only as document. NLP is a culmination of 8 years of effort,” said PM Modi.

Prime Minister Modi inaugurates World Dairy Summit 2022

Prime Minister(PM) Narendra Modi inaugurated the International Dairy Federation World Dairy Summit (IDF WDS) 2022 at India Expo Centre and Mart in Greater Noida on 12 September 2022. PM Modi also inspected an exhibition at the site.

Addressing the gathering, PM said, “The potential of the dairy sector not only gives impetus to the rural economy, but is also a major source of livelihood for millions of people across the world." The Indian dairy industry is unique as it is based on a cooperative model that empowers small and marginal dairy farmers, especially women. The Government has taken multiple steps for the betterment of the dairy industry resulting in an increase of milk production by more than 44% in the last eight years.

Trade Ministers from India and Canada hold  virtual meeting to fast-track
CEPA negotiations

On 26 August 2022, Commerce Minister Piyush Goyal spoke with Canada's International Trade Minister Mary Ng. In the monthly virtual meeting, both the Ministers emphasized the value of advancing trade and investment relations between India and Canada, and underlined the progress in negotiations for an India-Canada Early Progress Trade Agreement held in July and August 2022.

Minister Piyush Goyal and Minister 
Mary Ng meet on the sidelines of
G20 meet in Bali, Indonesia

On 23 September 2022, Commerce Minister Piyush Goyal held discussion with his Canadian counterpart Minister Mary Ng on the sidelines of a G20 trade ministerial meeting in Nusa Dua, Bali, Indonesia.

They discussed modalities of the Early Progress Trade Agreement negotiations. This was the sixth meeting between the two ministers within a year, and the second in person after Minister Ng visited India earlier this year, where the two countries decided to consider the interim agreement during the course of a ministerial dialogue on trade and investment with Minister  Goyal on 11 March 2022.

Aviation Minister Mr. Jyotiraditya Scindia holds an
Executive Dialogue with Canada’s key companies in Montreal

Union Aviation Minister Mr. Jyotiraditya Scindia visited Montreal, Canada from 25-27 September 2022 to attend the 41st Session of International Civil Aviation Organisation (ICAO) Assembly. On 26 September 2022, an Executive Session with key aviation companies and pension fund managers was jointly organised by the High Commission of India, Ottawa and Canada-India Business Council (C-IBC) in Montreal. Around 9 companies including Pole Air Aviation, Grintex Technologies, Airbus Canada, CDPQ, OMERS, PSP Investments, Fairfax Group, RBC and Balcorp Limited attended the event. Mr. Victor Thomas, President, C-IBC moderated the session. Acting High Commissioner (AHC) Manish made opening remarks and introduced the Minister to the gathering. The Minister held company-specific discussions with the participants and spoke about the opportunities available in India, one of the fastest growing civil aviation markets globally. He also invited the Canadian companies to set up their manufacturing units in India and avail benefits from pertinent investment and production-linked schemes in the country. He added he would love to work with all the investors as a facilitator more than a regulator.

ICAO (International Civil Aviation Organization) signs MOU
with International Solar Alliance in Montreal

In a ceremony held on the sidelines of the 41st Session of International Civil Aviation Organisation (ICAO) Assembly in Montreal on 26 September 2022, a Memorandum of Understanding (MOU) was signed between International Solar Alliance (ISA) and ICAO in the presence of Hon’ble Jyotiraditya M. Scindia, Minister of Civil Aviation of India, HE Monsieur Clement Beaunne, Minister of Transport of France and Mr. Salvatore Sciacchitano, President of the ICAO Council. The MOU was signed by Mr. Juan Carlos Salazar, Secretary-General, ICAO and Mr. Joshua Wycliffe, Chief of Operations, ISA

During the visit of Aviation Minister Jyotiraditya M. Scindia to Montreal in May 2022, the idea of ICAO becoming a partner organisation of ISA was mooted by the Minister during his meeting with President of ICAO. In a period of four months, the MOU was agreed and concluded. The conclusion of an MOU between ISA and ICAO in the presence of two Ministers from India and France carries forward the legacy of the bold initiative laid down by Prime Minister Modi and Mr.Francois Hollande, former President of France in 2015 at COP 21 in Paris.

Incredible India Reconnect 2022: Canada Edition - 13 September 2022

On 13 September 2022, Ministry of Tourism of India in association with the High Commission of India, Ottawa, supported by Invest India, organised a virtual Incredible India Reconnection 2022 Roadshow for Canada. Acting High Commissioner Anshuman Gaur spoke about the tourism potential in India. Canadian tour operators provided the overview of the Canadian tourism market and provided suggestions for the growth of outbound tourism from Canada to India in the future.

PM Gati Shakti National Master Plan

“An impetus to power infrastructure development”

For more information :

High Commission's engagement with major stakeholders & other 
meetings in the India-Canada commercial corridor

On August 4, 2022, Acting High Commissioner (AHC) Anshuman Gaur had a meeting with Mr. Goldy Hyder, President and CEO of Business Council of Canada to discuss his visit to India and meetings in the Department of Commerce. From 8-12 August 2022, the Indian delegation on India-Canada Comprehensive Economic Partnership Agreement(CEPTA)/Early Progress Trade Agreement(EPTA) led by Ms. Rachna Shah, Additional Secretary(NAFTA), Department of Commerce and India's Chief Negotiator, held third round (part 2) of negotiations with Canadian side in hybrid mode in Ottawa. On August 9, 2022, AHC had a virtual meeting with Mr. Anirudh Bhagchandka, Founder, Global Trade Observers to discuss promotion of India-Canada bilateral commercial relations. On August 10, 2022, AHC had a joint meeting with Mr. Rohinton P. Medhora, Canadian economist and former President of Centre for International Governance Innovation(CIGI and Dr. James J. Nedumpara, Head of Centre for Trade and Investment Law (CTIL) of India. On August 17, 2022, AHC addressed the virtual International Spice Trade Fair organised by Spices Board, India. On August 17, 2022, AHC had virtual interactive session with ASSOCHAM members to brief them about recent developments in the bilateral relations-trade & non-trade barriers and expected commercial gains to the industry from India-Canada trade agreement, CEPA. On August 24, 2022, a virtual meeting between Chief Negotiators of India and Canada on Bilateral Investment Promotion and Protection Agreement (BIPPA)/FIPA was held. On August 30, 2022, AHC had a meeting with Mr. Michael Coe, Director, Government and Public Affairs, Ontario Teachers Pension Plan (OTPP). On August 30, 2022, AHC addressed the CII Business Forum members virtually and informed them regarding ongoing India-Canada EPTA/CEPA negotiations. On 20 September 2022, the Indian delegation from Competition Commission of India participated in the Competition Bureau's Competition and Green Growth Summit held in Ottawa. On 26 September 2022, Mr. Jo Taylor, President and CEO of Ontario Teachers Pension Plan (OTPP), Canadian Pension Fund, visited India.From September 26-30, 2022, the Canadian delegation visited India and held fourth round of negotiations in hybrid mode for India-Canada Early Progress Trade Agreement (EPTA)/Comprehensive Economic Partnership Agreement(CEPA). On 30 September 2022, AHC Manish held a meeting with Mr. Kameshwar Mishra, Vice-Chair, Indo-Canada Ottawa Business Chamber (ICOBC).

Completing his illustrious tenure in Ottawa, Deputy High Commissioner / Acting High Commissioner Anshuman Gaur signed off on 15 September 2022. Team High Commission bade farewell to him thanking him for his leadership, his constant positivity and encouragement, and wished him the very best for his future assignments.

Canadian pension fund Ontario Teachers’ sets up office in Mumbai, India

Canadian pension fund Ontario Teachers’ Pension Plan Board (OTPP), which manages assets worth over C$ 242.5 billion has established an on-the-ground presence in India, with the opening of a new office in Mumbai to build on its existing Indian portfolio. With the establishment of an India office, Ontario Teachers’ becomes the third Canadian pension fund manager to set up a local team in India. Its larger counterparts CPP Investments and CDPQ already have local offices in the country.

Canada's Canpotex signs MoU with
Indian fertilizer companies    

Coromandel International, Chambal Fertilizers and Indian Potash Limited have signed a Memorandum of Understanding (MoU) with Canpotex, Canada. Union Minister of Chemicals and Fertilizers Mr. Mansukh Mandaviya said the MoU will reduce both supply and price volatility and ensure a stable long-term supple of potash fertilizer to India. “Government of India has been encouraging the domestic fertilizer industry to establish supply linkages through long term partnerships with resource rich nations. Given India’s high dependence on imports of raw material and fertilizer minerals, these partnerships will provide secured availability of fertilizers and raw materials over a period of time."

Canada's OTPP announces agreement to acquire a majority stake in Sahyadri
Hospitals in India

Ontario Teachers' Pension Plan Board (OTPP), on 16 August 2022, announced an agreement to acquire a significant majority stake in Sahyadri Hospitals Group ("Sahyadri"), the largest private hospital chain in the state of Maharashtra, from the Everstone Group.

Sahyadri has 8 hospitals with 900 operating beds and 300 critical-care beds. In addition, the hospital chain has plans to grow capacity by over 500 beds during the next five years. With 2,000 clinicians along with 2,600 supporting staff across its network of hospitals, Sahyadri's facilities are concentrated around the city of Pune, which is the second largest city in Maharashtra by population.

Canada's Magna invests US$ 77 million
in India's EV startup Yulu

Magna International Inc is investing US$77 million in India's EV startup Yulu to enter the micromobility market, the Canadian auto parts supplier said. Magna will own a stake and hold a seat on the board of the Bangalore, India based company. The two companies have established a new battery swapping entity. Yulu operates around 10,000 low-speed electric two-wheelers in Bangalore, Delhi, and Mumbai. It is targeting an additional 15 cities in the next 18 months.

Canada's OTPP invests in Mahindra's renewable energy arm in India 

India's Mahindra Group and Canada's Ontario Teachers’ Pension Plan Board (OTPP) announced a strategic partnership to capitalize on the growing renewables opportunity in India. The parties have signed binding agreements pursuant to which Ontario Teachers’ will acquire a 30% equity stake in Mahindra Susten Private Limited (Mahindra Susten). The proposed transaction also envisages the setting up of an Infrastructure Investment Trust (InvIT) in compliance with applicable regulations of the Securities and Exchange Board of India.

Canada's Tim Hortons opens doors in
Delhi-NCR for the first time

Canadian coffee brand Tim Hortons launched its India edition for coffee-lovers across the country. On 11th August 2022, the brand opened its doors in Delhi-NCR with two outlets - one in Select Citywalk, Saket and DLF Cyberhub, Gurgaon. Tim Hortons currently has more than 5,300 restaurants across 13 countries, including the Middle East, China, the UK, Mexico, Spain, Thailand and Philippines. The warm, comforting interiors and welcoming environment are in line with the original Tim Hortons outlets from Canada.

CPPIB, Brookfield, Petronas and Arcelormittal among bidders for stake in green energy
unit of India’s NTPC 

The Canada Pension Plan Investment Board (CPPIB), Brookfield, Malaysian state-run Petronas and Arcelormittal SA are among the 13 bidders for a minority stake in the green energy unit of India’s NTPC Ltd, according to sources. NTPC, the country’s largest utility, anticipates the private placement will initially raise US$ 251-million and will be followed eventually by a spin-off of the green energy unit as a separate India-listed entity.

"Our exposure to India will be a very significant part of the balance sheet,"
Mr. Jo Taylor, President & CEO, OTPP

For more information :

India's Infosys opens digital centre in Canada, to employ 1,000 people

IT major Infosys inaugurated the Infosys Digital Centre in Calgary, Alberta, Canada. The company said it would bring 1,000 jobs to Calgary over the next two years, doubling its original commitment from when the company first expanded into the region in 2021. This will support the company’s growth across Canada as it also plans to double its total workforce commitment in the country to 8,000 employees by 2024, said a release.

“We chose to open in Calgary because it is a center of tech excellence with rich IT talent and a strategic location that enables us to scale work with clients across key industries, such as energy, natural resources, and agriculture,” said Ravi Kumar, President, Infosys.

Walmart on a drive to attract Indian
sellers to its Canadian marketplace

US retail giant Walmart held a day-long Global Seller Summit in Delhi on 27 September 2022 to take Indian companies to Canada market through its ecommerce marketplace. Walmart is one of Canada’s most popular brands. It operates more than 400 stores nationwide and is one of the largest online retailers and fastest growing marketplace platforms in Canada. Close to 500 Indian manufacturers, brands and sellers attended to hear from local and global Walmart experts, logistics and fintech service providers, and Indian companies that are already using Walmart Marketplace.

India's Lupin Pharma gets nod for
arthritis drug 'Rymti' in Canada

Indian drug maker Lupin, on 13 September 2022, said its biosimilar product Rymti, indicated for the treatment of arthritis, has received approval from the Canadian health authority. The company's product is the biosimilar of reference drug Enbrel (Etanercept). The product is indicated for the treatment of rheumatoid arthritis, juvenile idiopathic arthritis, psoriatic arthritis, axial spondyloarthritis , plaque psoriasis and paediatric plaque psoriasis. "The approval for Rymti in Canada is a key milestone in our endeavours to improve access to medicines," Lupin Biotech President Cyrus Karkaria said in a statement.

Why India ?

Based on economic modelling by Ciuriak Consulting, this joint report by the Business Council of Canada and the Canada-India Business Council lays out the case for a comprehensive economic partnership agreement (CEPA) with India as a cornerstone of Canada’s engagement with the Indo-Pacific region.

For more information :

India to become hub for global app innovation, says Google Play executive

India will have a "critical role" in developing global apps as its start-ups build products that are used widely, said Google Play. Google Play, the app store platform for Android phones, completed ten years of operations recently. Mr. Aditya Swamy, Director, Play Partnerships, said India is one of the top downloaders of apps and games. “From leading in-app adoptions to emerging as a large global developer hub, India will play a critical role in the evolution of the global app ecosystem in the coming decade,” he said in a blog post.

Daikin sets up third R&D centre with
US$ 62.9 million investment in India

Daikin, a Japanese electronics giant, has invested US$ 62.9 million to build its third R&D facility in India. Beginning in 2023, the facility in Neemrama, Rajasthan, will be operational. The centre, which covers 24,000 square metres, will have over 250 engineers working on customized items for the Indian market. 22 testing facilities and labs will be a part of the new centre, which will also improve Daikin's manufacturing capabilities and enable it to meet international export demand.

Apple may move a quarter of iPhone production to India by 2025: JP Morgan

According to JP Morgan, by 2025, Apple is expected to manufacture one out of every four iPhones in India as the tech giant has shifted some of its manufacturing away from China due to rising geopolitical tensions and stringent COVID-19 lockdowns in the country. India, the second-largest smartphone market in the world after China, is expected to receive around 5% of Apple's iPhone 14 manufacturing starting in late 2022.Apple, based in Cupertino, California, has placed a significant bet on India since it started assembling iPhones in 2017 with Wistron and later with Foxconn, in accordance with the Indian Government's push for local manufacturing.

Japan's Nissan achieves milestone of shipping out one million 'Made in India' cars

Japanese car maker Nissan has achieved a milestone of shipping out one million cars to different overseas markets. The Nissan cars are made at Renault-Nissan Automotive India Private Ltd's (RNAIPL) plant. The company is a joint venture between Japan's Nissan and French automobile company Renault. Nissan Motor India has shipped its cars to about 108 countries since 2010. The company was incorporated in 2005 and offers hatchback, MUV, SUV and sedans in India. Nissan in India has a portfolio of two brands, Nissan and Datsun. Nissan has transitioned its primary export market from Europe to the Middle East countries like Saudi Arabia, the UAE, Oman, Qatar, Bahrain and Kuwait.

Vedanta-Foxconn ink MoU with Government of Gujarat to set up semiconductor plant

On 13 September 2022, Foxconn and Vedanta Resources signed a memorandum of understanding (MoU) with the Indian state Gujarat for the construction of semiconductor and display production plants. The agreement is valued at US$ 19.5 billion and is marked as the largest investment project in any Indian state to date.

Prime Minister Modi also has expressed optimism after Government of Gujarat signed the MoU. He also pointed out that the investment will create a significant impact to boost economy and jobs while also help in creating a huge ecosystem for ancillary industries and thereby helping the MSMEs. The MoU was signed in the presence of Union Minister for Electronics and Information Technology Mr.Ashwini Vaishnaw, Gujarat Chief Minister Mr.Bhupendra Patel, Vedanta Group Chairman Mr.Anil Agarwal, among other officials.

Will continue to invest in India aggressively:
 Mr. Toshihiro Suzuki, President, Suzuki Motor Corp

For more information :

IIT-Madras becomes first Indian institute
to join IBM Quantum Network

The Indian Institute of Technology, Madras (IIT-Madras) has joined the IBM Quantum Network, and has become the first Indian institute to do so. This network aims to advance quantum computing skills development and research in India. IIT Madras will now get cloud-based access to IBM’s most advanced quantum computing systems. It will also get to explore practical applications of the technology. IBM managing director, Sandip Patel said that he believes that this collaboration will make India one of global powerhouses in computing.

Over 45 new data centres to come up
in India by 2025

According to the ANAROCK-Binswanger report 'Under the Lens: India's Data Centre Explosion,' 45 data centres (DCs) covering 13 million square feet and 1,015 Mw of IT capacity are expected to open in India by the end of 2025. Over 69% of the new IT capacity (1,015 Mw) will be built in Mumbai and Chennai, with 51% in Mumbai alone. Currently, India has 138 DCs totalling around 11 million square feet and 737 million watts of IT capacity (building ready). At least 57% of the existing IT capacity is concentrated in Mumbai and Chennai.

World's largest drone fund to invest up to
US$ 40 million in UAV ecosystem in India

The US$ 170 million Drone Fund (DF), a venture capital fund located in Japan that specialises in supporting the unmanned aerial vehicle (UAV) ecosystem, intends to invest up to US$ 40 million in Indian companies operating in the sector. One of the fund's main objectives is to invest in agro drones in order to enhance croppage using approaches that science can help facilitate. The other sector will be drones that can transport huge payloads at high altitudes.

Wind energy has huge potential in India,
to cost less by 2026

For more information :

Economic reforms, ease of doing biz likely to take India's FDI to US $100 billion this fiscal

Government of India, on 24 September 2022, said that India is on track to attract US$ 100 billion foreign direct investment (FDI) in the current fiscal owing to economic reforms and ease of doing business. The country received the " highest ever" foreign inflows of US$ 83.6 billion in 2021-22. " This FDI has come from 101 countries, and invested across 31 union territories and states and 57 sectors in the country. On the back of economic reforms and Ease of Doing Biz in recent years, India is on track to attract USD 100 billion FDI in the current FY (financial year),"  Ministry of Commerce & Industry said.

India writes its growth story in Fintech services

Why is India at the forefront of the Fintech revolution?

For more information :

India Launch of Global Innovation Index 2022 and Innovation Conclave

India has been on a rising trajectory over several years in the GII, from a rank of 81 in 2015 to 46 in 2021. CII (Confederation of Indian Industry), being the founding knowledge partner of Global Innovation Index (GII), has been an integral part of India's journey towards an innovation driven economy. As one of the founding partners, CII hosted the India Launch of Global Innovation Index (GII) 2022 and Innovation Conclave  on 30 September 2022 in partnership with the NITI Aayog, Government of India and the World Intellectual Property Organisation (WIPO).

India may surpass Germany, Japan to become the third largest economy by 2029

A report authored by State Bank of India's (SBI) Chief Economic Adviser Soumya Kanti Ghosh has stated that India is likely to become the third largest economy by 2029, largely due to the structural shift since 2014. 

Reportedly, the study asserted that India will likely surpass Germany in 2027 and Japan in 2029 to move atop the table if the current rate of growth is maintained. The report took a measure of India's GDP forecast for FY23 and added that 6 per cent to 6.5 per cent is the new normal. In August 2022, the National Statistical Office (NSO) revealed data showing that India's GDP expanded at its quickest rate in a year during the April-June quarter.

  Indian Economy continues to grow !!!

India has signed Bilateral Air Service Agreement with 116 countries

For more information :

Incredible India !

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