Canada
(Source : High Commission of India, Ottawa)
Products with Export Potential for India
The products which Canada imports from other countries and India can seize the opportunity.
Description : Electrical or Electronic Machinery and Equipment
Rationale : The total market size of electrical machinery in India is anticipated to reach US$ 100 billion by 2022 from US$ 24 billion in 2013. The electrical machinery sector consists of generation, transmission and distribution machinery. In order to become a global force, Indian machinery sector needs to understand these changes and evolve to serve the user industries with the next generation products through integration of equipment with information technology like autonomous haulage or unmanned vehicles equipped with GPS, CCTV cameras, inertial guidance systems, and leverage dispatch route planning and guidance software for functioning.
Description : Optical, Medical, Photographic, Scientific and, Technical Instrumentation
Rationale : One of the potential items of India’s exports to Canada must include Optical, Medical, Photographic, Scientific and Technical Instrumentation.US, china and Mexico are the top markets for the import of this HS 2 category. India is not in the top ten. India’s has competitive disadvantages in the Optical, Medical, Photographic, Scientific and Technical Instrumentation market, but it also represents key opportunities for India to improve its position in the global economy through focused innovations.
Description : Furniture and Stuffed Furnishings, Lamps and illuminated Signs, Prefabricated Buildings
Rationale : Analysts forecast the global furniture market to grow at a CAGR of 4.27% during the period 2017-2021. China and U.S have been the top exporters of Furniture. Consumers globally are spending more on home decor and furniture. This drives the global furniture market. A large part of this growth is expected to come from the rapidly growing consumer markets of Asia, implying significant potential for growth in the Indian furniture sector.
Significant Trends in Trade and Investment
Details of significant trends : Canada’s total trade with India increased by 12.89% viz-a-viz January-April 2018. Canadian exports to India and imports from India both increased, but not substantially.
Analysis : The total trade with India from Jan-Apr 2018 was $2.3 billion USD. However, for Jan- Apr 2019, the total trade is $2.6 billion USD. Exports were high to India in Apr 2019 in comparison to Apr 2018.
Globally, Canada`s exports rose 1.3% in April reaching a total value of $50.7 billion, this coincides with a recent increase in global demand for gold. In real (or volume) terms, exports were up 2.0%. Export gains in April were largely driven by precious metals. Precious metals exports – which are typically volatile from one month to the next – jumped by more than 38% in April.
Exports of farm, fishing and intermediate food products (+5.1%) also contributed to the increase, mainly on higher exports of wheat (+21.7%). The increase was partially offset by lower exports of canola (-14.7%), for which there were no shipments to China in April. For the year 2018, 47.5% of Canadian exports of canola were destined for that country.
Details of significant trends : India stayed at 12th position as the largest market for Canadian Imports year to date. For Jan- Apr 2019, Canada’s total imports from India increased by 1.36% in comparison to Jan- Apr 2018.
Analysis : The total import figure of Jan-Apr 2019 is $1.4 billion USD. However, for Jan- Apr 2018 the figure was $1.3 billion USD. The Top products of import from India are Nuclear Reactors, Boilers, Articles of Iron or Steel, Pharmaceutical Products, Organic Chemicals (Including Vitamins, Alkaloids and Antibiotics), Machinery and Mechanical Appliances, Motor Vehicles, Trailers, Bicycles, Motorcycles and Other Similar Vehicles.
Details of significant trends : Overall Canadian global imports decreased 1.4%, mostly on lower imports of aircraft. As a result, Canada`s merchandise trade deficit with the world narrowed from $2.3 billion in March to $966 million in April, the lowest deficit since October 2018.
Analysis : Total imports were down 1.4% in April to $51.7 billion. Imports decreased in 6 of 11 sections, with aircraft and other transportation equipment and parts contributing the most to the decline. The decline in imports into Canada was largely concentrated in finished industrial and consumer goods.
After decreasing 15.6% in March, imports of aircraft and other transportation equipment and parts declined 23.6% in April to $1.9 billion. Following a record $1.2 billion in February, imports of aircraft were down sharply in March (50.7%) and continued to decline in April (-82.7%), mainly due to lower deliveries of airliners from the United States. Canadians bought more goods from the United States in April; imports from that country were up 1.9 per cent compared to March ($641 million). However, they bought less from nearly everywhere else. After spiking in March, imports from China fell back significantly in April, dropping by $301 million (7.0 per cent). There were also notable declines in imports from Mexico, Japan, Norway and several countries in the EU.
Details of significant trends : India fell to 12th position as the largest market for Canadian exports year to date. The total exports increased by meagre 3.22%% in Apr 2019 viz-a-viz 2018.
Analysis : The total export figure for Jan-Apr 2019 was $1.1 billion USD. However, for Jan- Apr 2018 the figure was $918 million USD. The Top products of export from Canada to India were: Mineral Fuels, Mineral Oils, Bituminous Substances and Mineral Waxes, Ores, Slag and Ash, Fertilizers, Pearls, Precious Stones or Metals, Coins and Jewelry, Pulp of Wood and The Like; Waste and Scrap of Paper or Paperboard. The exports in the following categories saw remarkable increase:
Aircrafts and Spacecrafts (3,265.50%), Edible Vegetables and Certain Roots and Tubers (424.40%).
Details of significant trends : Canada`s global exports grew by 1.3% in April, reaching a total value of $50.7 billion. Canadian exports have almost fully recovered from their decline in the second half of 2018.
Analysis : Globally, a spike in precious metals deliveries drove exports higher in April. With exports up three times in the past four months, Canada has almost fully recovered the ground lost in the final quarter of 2018. Canada’s export gains in April were heavily concentrated in three markets: Hong Kong, the United States and China.
Canada’s Brookfield eyes Mytrah Energy in India
Teranet Inc, a leading IT solutions provider for the Canadian financial services and real estate markets, has set up its first centre for software development at the Technopark in India. Teranet Inc. is a 100 per cent subsidiary owned by OMERS Infrastructure, one of Canada`s largest defined benefit pension plans, with USD 97 billion in net assets. The 10,000-square-foot new office at Technopark was inaugurated by Consul General of Canada, Nicole Girard in the presence of Teranet president and CEO Elgin Farewell and CIO Fariba Rawhani, among others. “The new centre of development will enable us to deliver industry leading solutions to our clients, and to support the success of Teranet`s centre of development and to support growth using advanced technologies such as AI and blockchain in the future," said Farewell.
(Source : India Canada Biz Digest)
CPPIB, others eye RIL’s InvIT assets in India
A number of global pension and sovereign wealth funds are in early-stage discussions with Reliance Industries to invest in two of its infrastructure investment trusts (InvITs)—Reliance Jio Infocomm’s tower and its fibre assets. The Canada Pension Plan Investment Board (CPPIB), Ontario Municipal Employees’ Retirement System (OMERS), British Columbia Pension Corporation (BCPC), Abu Dhabi Investment Authority (ADIA), Mubadala Development Company, Singapore’s GIC and German financial services firm Allianz SE among others are in the fray to acquire Reliance’s InvITs assets. RIL will bring on board five investors, as per law, while some like ADIA, Brookfield and CPPIB may come as co-sponsors writing larger cheque. RIL has mandated investment banks Citi, Moelis and Company and ICICI Securities to bring the investors on board.
(Source : India Canada Biz Digest)
France
(Source : Embassy of India, Paris)
Details of significant trends/analysis
Trade – In Jan-April 2019, India France bilateral trade stood at € 3.95 billion (+13.55%) as compared to the corresponding period the previous year. India’s exports to France increased by 13.25% during this period with a rise in exports of following top 10 category products: mineral fuels & oils (37.78%); natural or cultured pearls (89.68%); organic chemicals (31.9%); articles of leather, saddlery and harness, travel goods, handbags (36.26%); electrical machinery & equipment (29.98%); automobiles and parts (11.53%); nuclear reactors, boilers, machinery and mechanical appliances (3.03%); articles of apparel & clothing accessories, knitted or crocheted (2.16%). However there was a drop in exports of footwear (-7.08%) & articles of apparel & clothing accessories, not knitted or crocheted, (-3.57%).
Meanwhile, French exports to India decreased by 14.02% during the same period: Exports of following top 10 ranked products increased: iron & steel (184.34%); pharmaceutical products (11.26%); organic chemicals (22.23%); articles of iron & steel (17.19%); miscellaneous chemical products (45.22%); optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus & parts thereof (1.19%) & plastics and articles thereof (4.71%); aircraft & spacecraft (40.02%). However, exports of following products decreased: nuclear reactors, boilers, machinery & mechanical appliances (-18.53%); electrical machinery & equipment (-3.54%).
Investment – According to the ‘Business France Annual Report 2018’, a public operator supporting French investors in India and Indian investors in France, there are over 150 Indian companies operating in France (including sub-subsidiaries), employing around 7,000 people. Seventeen investments from India were recorded in 2018, Indian projects often involved decision-making centres (59% of projects; 53% of jobs) and production/manufacturing operations (18% of projects; 34% of jobs). Investments were mainly made in the software and IT services sector (24% of projects; 30% of jobs), and the machinery and mechanical equipment sector (12% of projects; 21% of jobs).