India-Canada Tensions: Trade Flows Unaffected Amid Diplomatic Strain

Despite escalating diplomatic tensions between India and Canada, bilateral trade in goods has remained stable. The trade value grew marginally, highlighting that political strains haven't yet severely impacted economic ties. However, experts urge both countries to handle the situation carefully to prevent economic fallout.

The escalating diplomatic rift between India and Canada has not yet disrupted the flow of bilateral trade in goods, according to a recent report by the think tank GTRI.

The report highlights that while political tensions have risen due to allegations linking India to an investigation in Canada, trade has remained largely unaffected, growing slightly from USD 8.3 billion to USD 8.4 billion over the past year.

Experts warn that as the diplomatic standoff progresses, careful management by both nations will be crucial to avert a deeper economic impact.

(With inputs from agencies.)