Fairfax-IDBI deal signals stronger Canada-India ties: Sidhu

Bengaluru: Canada’s Fairfax Financial Holdings’ nearly $5.5 billion investment in IDBI Bank signals improving economic ties between Canada and India and could encourage further investments, Canada’s trade minister Maninder Sidhu said in Bengaluru on Friday, as the two countries work towards concluding a Comprehensive Economic Partnership Agreement (CEPA) by the end of the year.The transaction, involving the acquisition of a majority stake in IDBI Bank, will be the largest foreign investment in India’s financial sector, Sidhu said. “It’s the largest deal between our two countries in the financial sector, and that sends a clear signal to supply chains that Canada is ready to do more,” he said.Canadian pension funds and large institutions have collectively invested close to C$107 billion in India across roads, highways, healthcare, technology, clean technology and energy. Sidhu said investors were looking to expand their presence as India builds infrastructure, including highways and airports.The minister was speaking at the conclusion of a Canadian trade mission that brought around 300 business delegates representing 150 organisations to India, the largest such mission in 30 years. More than 30 deals between Canadian delegates and Indian partners, worth close to C$300 million, were concluded during the visit, he said.“When you sign a free trade agreement, the business community picks up the cues. The warming of relations between the two countries is very important,” he said.The immediate priority is CEPA, negotiations for which were relaunched in Nov last year. Five rounds have been completed, with another scheduled for the week of Nov 9 in Delhi. The agreement is expected to help more than double bilateral trade to $70 billion by 2030.Sidhu said he and commerce minister Piyush Goyal had met close to 10 times to advance negotiations. “Our goal is to conclude the agreement by the end of this year,” he said.CEPA could open up opportunities in energy, critical minerals, fertilisers, aerospace and advanced manufacturing by reducing tariffs and improving market access, Sidhu said.Citing India’s import duties of around 7-8% on potash, he said lower tariffs could make fertilisers more affordable for Indian farmers. Reduced duties on aerospace products could also bring down costs. Canada, meanwhile, has high tariffs on apparel, footwear and furniture, potentially creating opportunities for Indian exporters.“The two economies are complementary,” Sidhu said, adding that tariff lines offered clues to the sectors likely to gain most from the agreement.CEPA could also create further opportunities for Indian IT services companies in Canada, while Canadian engineering firms could contribute to India’s infrastructure development, he said.On immigration, Sidhu said Canada remained open to international students and skilled workers but wanted a more sustainable system that accounted for pressures on housing, healthcare and infrastructure.“We’re really focused on economic immigration as a government,” he said, pointing to demand for physicians and nurses in Canada’s healthcare sector. International students remained welcome, but their intake had to be sustainable, he added.You use AI every day. Now get your AI Quotient. Take the AIQ test.