Ontario Seeks Defence Partnerships with India as Trade Ties Strengthen
In a significant development for international trade, Ontario is actively pursuing enhanced economic collaboration with India, with a particular focus on the defence industry emerging as a major new opportunity. Victor Fedeli, Ontario's Minister of Economic Development, Job Creation and Trade, made this announcement during a recent visit to Ahmedabad, emphasizing the strategic pivot towards defence spending.
Defence Emerges as Top Priority in Bilateral Relations
Fedeli stated that while aerospace has traditionally been a key sector, defence is now taking center stage. He explained, "Ontario is looking for opportunities to partner with companies and manufacturers who want to pivot towards defence, where the big spending is. If you asked me last year or any of the previous six years, I would have said aerospace. Now this year there is a particular twist: defence."
This shift aligns with Canada's broader national commitments, as Fedeli highlighted that Canada aims to allocate 5% of its GDP towards NATO obligations, a pledge announced by the Prime Minister. A significant component of this effort includes the federal government's proposed purchase of 12 submarines, underscoring the growing importance of defence investments.
Robust Trade Growth and Diverse Cooperation Areas
Bilateral trade between India and Ontario has shown remarkable growth, currently standing at approximately $5 billion annually, representing a 60% increase since 2018. Fedeli praised India as the world's fastest-growing economy, poised to become one of the largest, and noted that the region serves as a crucial hub for export-import activities.
Beyond defence, cooperation is expected to continue flourishing in life sciences and technology sectors. Fedeli emphasized, "We have mutual expertise in life sciences, petrochemicals and tech." Additionally, Ontario is exploring opportunities in advanced manufacturing, further diversifying the economic partnership.
Geopolitical Shifts and Stable Partnerships
Addressing the volatile global landscape, Fedeli pointed out that the United States is no longer viewed as a reliable partner for Canada since Liberation Day in January of the previous year. In a world marked by wars and supply chain disruptions, countries are increasingly seeking stable and dependable alliances.
He described India as "a reliable partner to Canada and a very reliable partner for the United States," indicating that Ontario will continue to engage with India on economic fronts while leaving broader geopolitical matters to federal governments. This approach reflects a strategic realignment in response to global uncertainties.
Indian Companies Thriving in Ontario
Fedeli highlighted the presence of several major Indian corporations operating in Ontario, including:
- HGS
- Infosys
- HCL
- Zoho
- Tata Consultancy Services
These companies contribute to the vibrant economic ecosystem, reinforcing the strong ties between the two regions. As Ontario looks to expand trade with India, this existing foundation of corporate engagement provides a solid platform for future growth and collaboration in defence and other high-potential sectors.
