Diplomatic Disputes on the Rise: India-Canada Trade Remains Unshaken

Despite ongoing diplomatic tensions between India and Canada, their trade relations remain stable. Bilateral merchandise trade grew slightly, with India's imports from Canada increasing while exports dipped. The diplomatic row is not expected to impact these ties, though the situation requires careful management to avoid economic fallout.

The ongoing diplomatic row between India and Canada is not expected to impact the bilateral trade and investment ties between the two countries, according to government sources.

The trade between India and Canada showed slight growth, with merchandise trade values increasing from USD 8.3 billion in 2022-23 to USD 8.4 billion in 2023-24.

Academics and analysts emphasize the need for both nations to manage diplomatic tensions carefully to avoid wider economic consequences.

(With inputs from agencies.)