The escalation in the diplomatic row between India and Canada will not have an impact on the bilateral trade and investment ties between the two countries, government sources said on Tuesday.
They also said that the bilateral trade value is not significant and Canadian funds can route their investments through Singapore, the UAE and the US.
"India is a preferred investment destination," they said.
Canada is India's one of the primary sources of lentils and now that can come from Australia, they said, adding that Indian students and professionals would also have huge opportunities in different countries.
The bilateral merchandise trade between India and Canada actually grew slightly from USD 8.3 billion in 2022-23 to USD 8.4 billion in 2023-24.
India's imports from Canada increased to USD 4.6 billion, while exports saw a marginal dip, falling to USD 3.8 billion.
During April-July this fiscal, India's exports stood at USD 1.3 billion, while imports were USD 1.37 billion.
Think tank Global Trade Research Initiative (GTRI) too has stated that the diplomatic tensions between India and Canada have so far not impacted the bilateral trade in goods between the two countries.
It added that as this dispute drags on, both nations will need to carefully manage their actions to avoid a full-blown economic fallout.
The ongoing allegation has led to a back-and-forth expulsion of diplomats and paused Free Trade Agreement (FTA) talks.
India has received USD 4 billion foreign direct investments from Canada during April 2000-June 2024.
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