Bengaluru: India and Canada are aiming to conclude a trade deal ahead of prime minister Narendra Modi's December visit with talks on a bilateral investment treaty to follow, according to a top Canadian trade official.
"We are hoping to get there. We have another round of negotiation, as I mentioned, on November 9 back in New Delhi. So, I'll be bringing my chief negotiator and the full team with me," Canada's minister for international trade Maninder Sidhu said, adding that the officials of both countries are actively working on wrapping up the trade agreement, with PM Modi scheduled to visit Canada on December 11-12.
Sidhu said there is "lot of good momentum and real energy" to get the deal done.
Addressing a press conference in Bengaluru, Sidhu said the focus will shift to BIT after conclusion of the trade deal.
Formal discussions have been underway since August and India's position to keep taxation out of the treaty framework is a major sticking point.
Canada is keen to increase the export of minerals, fertilisers, aerospace and advanced manufactured goods while India aims for better market access for its apparels, footwear and furniture sectors.
India will also seek to increase the country's IT service exports to Canada which currently accounts for a little over 1% of the total.
IDBI and Fairfax
Asked about Canada's financial holding company Fairfax's investment of $5.6 billion to acquire a controlling stake in IDBI Bank, Sidhu said, "It is the largest deal between our two countries in the financial sector, and that sends a clear signal that Canada is ready to do more."
He has said Canadian pension funds, asset management companies and financial institutions have invested close to $107 billion in India in sectors such as highway infrastructure, healthcare, technology, cleantech and energy.
"From my conversation with the pension funds, they are looking to do more," he said.