Debunking the current narrative: updating the Canada-India economic relationship

Abstract

There have been significant improvements to the policy framework and tone of diplomatic relations to improve Canada-India economic relations under the previous Harper government. Yet, despite these changes and a commitment to increasing trade to CAD$15 billion by 2015, bilateral trade between the two countries remains stagnant at CAD$6 billion dollars a year. Academics, commentators and policy makers have settled on false narratives to explain why there has been little improvement to this potentially powerful economic relationship. Therefore, this article updates these explanations based on their limitations to improve how the Canada-India economic relationship should be reconceptualized. I recommend that exports that reflect innovative solutions to India's socio-economic development challenge are central to the future of bilateral relations. Canada must also be aware of how its ongoing position on international issues – such as climate change – will negatively affect its relations with India.

Résumé

Sous le gouvernement Harper, des améliorations considérables du cadre politique et du ton des relations diplomatiques ont eu lieu en vue de revitaliser les relations économiques entre le Canada et l'Inde. Pourtant, malgré ces changements et un engagement à augmenter les échanges commerciaux jusqu’à 15 milliards de dollars en 2015, le commerce bilatéral entre les deux pays continue de stagner à hauteur de six milliards de dollars par an. Les universitaires, les commentateurs et les décideurs politiques se sont basés sur des faits non avérés pour expliquer les raisons pour lesquelles cette relation économique potentiellement forte ne s'est pas plus optimisée. Aussi cet article fait-il une mise au point sur ces explications en soulignant leurs limites concernant l'amélioration de la manière dont les relations économiques entre le Canada et l'Inde doivent être repensées. Je recommande que les exportations qui reflètent les solutions innovantes pour le défi que représente le développement socio-économique en Inde aient une place centrale dans les relations bilatérales futures. Le Canada doit également comprendre combien sa position actuelle sur certaines questions internationales – telles celle du changement climatique - impactera négativement ses relations avec l'Inde.

Keywords:

• Canada-India relations
• trade policy
• foreign policy
• Stephen Harper
• diaspora
• nuclear trade

Acknowledgements

The author would like to recognize the continued support of the Centre for Foreign Policy Studies at Dalhousie University and the Department of Political Science at Dalhousie University.

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1. Politically, despite his promise and early successes, there continues to be some steady opposition to Prime Minister Modi's leadership, and it seems to be growing. His opponents have pointed to growing sectarian violence against minority groups, slow implementation of his digital India reforms and his ineffectiveness in bettering relations with neighboring states, especially Pakistan.

2. The five principles of the non-aligned movement as articulated by Prime Minister Nehru are: (1) mutual respect for each other's territorial integrity and sovereignty; (2) mutual non-aggression; (3) mutual non-interference in domestic affairs; (4) equality and mutual benefit; (5) peaceful co-existence.

3. Currently, Charakana is the fifth largest solar park in the world, with the United States completing four additional photovoltaic parks in 2014 and 2015.