Why in news?

• India suspended visa applications in Canada due to unspecified security threats.
  • The announcement was made on the visa facility website of the Indian High Commission in Canada.
• India also demanded Ottawa to reduce its diplomatic staffing in India.
  • This was demanded on the grounds of interference in domestic affairs in an escalation of the festering diplomatic crisis between the two countries.
• Earlier, New Delhi had advised all Indian nationals in Canada, as well as those who were planning to visit that country, to exercise utmost caution.
  • This was against the backdrop of growing anti-India activities and politically-condoned hate crimes and criminal violence in Canada

What’s in today’s article?

• India – Canada in numbers
• Trade relations, and India’s agri imports from Canada
• News Summary

India-Canada in numbers

Trade relations, and India’s agri imports from Canada

• Bilateral trade
  • India’s total trade with Canada in the last (2022-23) financial year was $8 billion — that’s 0.7% of India’s total trade ($1.1 trillion) with the world.
  • In 2022-23, roughly $4 bn of imports were matched by $4 billion of exports even though India enjoyed a tiny trade surplus of $58 million.
• Key items in trade
  • 
  • Among what India imports from Canada, three categories of goods dominate:
    • Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes.
    • Pulp of wood or of other fibrous cellulosic material; waste and scrap of paper or paperboard
    • Edible vegetables and certain roots and tubers
  • The top three exports
    • Pharmaceutical products
    • Articles of iron or steel
    • Nuclear reactors, boilers, machinery and mechanical appliance
  • Major agri-imports from Canada
    • The first is muriate of potash (MOP), the third most consumed fertiliser in India after urea and di-ammonium phosphate.
      • Canada was India’s largest MOP supplier last year, followed by Israel, Jordan, Belarus.
    • The second major item is masur or red lentil. India is a significant importer of pulses, with masur being the biggest after arhar/tur or pigeon-pea.

News Summary: India suspends visa services for Canadians

Background

• The current crisis began after Canada’s PM Justin Trudeau alleged a potential link between agents of the Government of India and the killing of Khalistani separatist, Hardeep Singh Nijjar, in Canada in June.
• Canada expelled a senior Indian diplomat, and India retaliated by expelling a senior Canadian diplomat.
• There has been no thaw yet and the current suspension of visa service comes against this backdrop.

Visa Suspension - Impact

• Impact
  • Canadian nationals who intend to visit India, but who do not have an Indian visa yet, will be impacted.
  • This group would include mainly Canadian tourists, business travellers, and students.
  • Tour operators in India had been expecting a large number of tourists from Canada to visit this winter.
    • In 2021, Canada was 4^th largest source of tourists in India.
  • However, with rising tensions between India and Canada, many such operators are bracing for cancellations from Canada.
• Impact on Indian-origin Canadians with OCI cards
  • Indian-origin Canadians who have a valid Overseas Citizen of India (OCI) card, or a valid long-term visa for India, will not be impacted by the suspension of visa services.
  • OCI cards allow holders lifetime entry into India, and to live and work in the country indefinitely.
• Impact on Canadians who already have a valid Indian visa
  • Canadians with a valid Indian visa will not be impacted by the Indian government’s latest decision.
  • As of now, their visa stands. They have not been cancelled yet.