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Prime Minister Narendra Modi's visit to Canada, the first bilateral visit by an Indian head of government in over four decades, is seen as one of huge political significance, as he sets out to re-energise and maximize the potential of a lagging relationship and interact with a million-plus strong diaspora.
On the business front, the visit is a mixed bag. The big announcement was that of the Department of Atomic Energy's agreement with Canada's largest uranium company Cameco Corp, to procure over seven million pounds of uranium concentrate over the next five years for power generation. Modi and his Canadian counterpart Stephen Harper witnessed the signing of the agreement in Ottawa on Wednesday morning. Canadian newspaper Globe and Mail had reported a few days ago that the multi-million dollar contract could be finalised and signed during Modi's visit.
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"Canada and India have a longstanding and mutual interest in expanding our trade relationship, particularly in the area of energy cooperation. This contract is a clear signal that our countries are open for expanding business partnerships together," said Harper.
Canada is the world's second largest producer of uranium, with annual exports of over $1 billion. India is the fourth largest energy consumer in the world, and is expected to grow its electricity supply over threefold in the next 25 years.
Speaking after his meeting with Harper, Modi said the two countries would implement the road map to conclude their bilateral free trade deal, the Comprehensive Economic Partnership Agreement (CEPA) by September. Talks on the deal have already blown past the original deadline of 2013. The two governments had set a target of achieving $15 billion in annual bilateral trade by 2015, helped by CEPA. But that figure stands at a paltry $6 billion today.
A Sakthivel, board member of the Apparel Export Promotion Council and head of the Sector Skill Council for Apparel, Made-ups and Furnishings, who was in Ottawa to sign one of the agreements on Wednesday, welcomed the fresh impetus to CEPA. "This will mean Indian garments can be exported duty-free to Canada," Sakthivel told Business Standard. Earlier, witnessed by the two prime ministers, he signed one of the 13 MoUs inked between India's National Skill Development Council and Canadian educational institutions in fields ranging from textiles and agriculture, to aviation and healthcare.
On Thursday in Toronto, Modi is expected to meet with major investors, including representatives of Canada's big pension funds, to make a pitch for investing in India, especially in infrastructure. But another meeting with CEOs and small business owners, which had been organised by the Canada-India Business Council and the Toronto Board of Trade, and was sold out days in advance, has been cancelled, due to apparent scheduling problems.
