India becoming magnet for Canadian companies, says survey

Last Updated: Tue, Jun 01, 2010 06:39 hrs

Vancouver: Despite China remaining the economic powerhouse of Asia, more and more Canadian companies are now eyeing the mounting investment opportunities in India, says a survey by the Asia Pacific Foundation here.

The Asian Investment Intentions Survey, released by the foundation here Monday, has found upsurge in interest among Canadian companies to invest in India.

From eight percent in 2005, the percentage of Canadian companies showing interest in India has gone up to more than 13 percent in 2010, said the survey.

Indian economy grows at 8.6% in Q4

China was the first choice of 21.1 percent respondent companies. About 13.4 percent opted for India, 9.9 percent for South Korea and 9.2 percent for Japan.

More than 55 percent of companies recognised the shift towards markets in Asia, said the survey.

'While China remains the top investment market for Canadian companies, the economic might of the region as a whole is a growing reality that Canadian companies ought to explore and seize,' foundation president and CEO Yuen Pau Woo said.

Woo said survey findings were no surprise as India, with average annual growth of 8.75 percent between 2003 and 2007, was emerging as an economic heavyweight in the region.

Banks turn net borrowers

Launching the survey, Export Development Canada president Eric Siegel said: 'Canadian investors are smart to be feeling bullish about investing in Asia. The long-term competitiveness of Canadian companies will be increasingly determined by how well they can integrate into supply chains in the emerging economies of Asia.'

A foundation statement said Prime Minister Stephen Harper's visit to India in November 2009 has intensified talks on economic and trade opportunities between the countries, including the possibility of a Comprehensive Economic Partnership Agreement (CEPA).

The two-way annual trade between India and Canada is still languishing at about $5 billion.