The overall share is
up from 0.42 per cent to 0.57 per cent during the same period, suggesting that
Canadian FDI grew faster than overall FDI during this period. The FDI numbers
reflect a substantial investment in a venture such as a foreign company setting
up a factory in India.
Such investments are typically seen to be long term
in nature.
The investments gain
significance amid controversy resulting in India and Canada expelling diplomats
on Monday 21 Oc
This came after
Canada’s allegations of Indian authorities being involved in the killing of
Canada-based Hardeep Singh Nijjar. India
has accused Canada of providing space to extremists in the country.
Canada’s rank in India
FDI has been steadily rising. It was 27th in 2015, 19th in 2019 and 17th in
2024.
The overall share
remains less than 1 per cent.
India’s overseas
direct investment into Canada rose from $1.95 billion in March 2021 to $2.14
billion in March 2024, according to available data from the Department of
Economic Affairs (DEA).
This represents an 8
per cent increase of India’s investments in Canada. The investments by Canada into India rose 96 per cent during this same
period.
The total value of
such FPI holdings has touched $27.9 billion as of September 2024, shows
depository data.
The bulk of this is
deployed in equities ($23.7 billion), followed by debt ($3.6 billion) as well
as hybrid and other instruments ($0.7 billion).
The total value of
Canadian FPI holdings was $7.6 billion in March 2015.
The surge has meant
that Canada’s share of overall FPI holdings has risen from two per cent to 2.8
per cent during this time. It had touched 3.7 per cent in March 2020 during the
worst of the pandemic fall.
The increased share may well reflect the fact that
much of these investments are coming in through pension funds which are
relatively long-term players.