International Business. Comparision of Canada and India

The Indian market is not very risky. Some of their largest export partners are very large countries including UAE, and USA. This helps to prove they have the quality and craftsmanship in their products to meet worldwide standards. Further India has a huge GDP, ranked fourth in the world, so there is not at a large economic risk. The median age in India is 25; this means it is a very young population. This is good because the labour force is very large and ample for to fill all jobs and innovate for the future. The country’s political system is stable and its legal system is relatively impartial. The unemployment rate is very low compared to Canada showing us that the economy was not hit as hard by the recession and the market is stable overall. Lastly, India’s economy is developing very fast and this rate may be fairly uncontrollable, although unlikely, there is a risk improper development in business resulting in corruption and detrition in quality of exports.

India reported a trade deficit equivalent to 18,080 Million USD in September of 2012. This means that India is exporting less than it is importing. This is because India is poor in oil resources and is currently heavily dependent on coal and foreign oil imports for its energy needs. Canada has the third highest reserves of oil in the world. If Canada supplies India with oil and India supplies Canada will other products such as machinery, a very strong relationship can be built between the two countries and help reduce the deficit.  

India is not very significant to the Canadian market; it is not a major export/import trading partner, they do not share many of the same business practices, and they have very different cultures, languages & climates. But, India is one of the fastest growing economies in the world. It is very important and unique for countries to do business with India because of its prosperous future. If we start to do business with them today, in a few decades we will have a very strong relationship with one of the largest, if not the largest economies in the world.  Increasing business with India right now is an investment for our future.

India recorded the highest growth rates in the mid-2000s, and is one of the fastest-growing economies in the world. India has recorded a growth of over 200 times in per capita income in a period from 1947 ( 249.6) to 2011. It is projected to surpass the US economy by 2050 and is increasing in development by leaps and bounds every day. The growth was led due to a huge increase in the size of the middle class consumer, a large , growth in the manufacturing sector due to rising education levels and engineering skills and considerable foreign investments. India is the  and  in the world. The economic growth rate stood at around 6.5% for the 2011–12 fiscal year.

It is very important for Canada to start investing and trading with India. We have seen an increase in the relationship between these two countries over the past few years. Below are some examples from the increased partnership between the countries.

2005

• Canada-India Agreement for Scientific and Technological Cooperation

2009

• Canada-India Joint Statement
• Memorandum of Understanding on Cooperation in Agriculture and Allied Sectors

2010

• Canada-India Joint Statement
• Nuclear Cooperation Agreement (ratification and implementation pending)
• Joint Study on a possible comprehensive economic partnership agreement

As we can see in the graphs below trade is on the rise between Canada and India and it continues to grow and flourish. It is important to keep these trends growing so we have a stable and healthy relationship in the future.  India will prove a very strong ally to Canada as it will be a worldwide leader in a few decades.