CANADA INDIA CORRIDOR
CANADA-INDIA SME PERSPECTIVE: THE BIGGER OPPORTUNITY BY NADERA HAMID
T HE P ERSP ECT IVE
Most of the Canadian and Indian SME’s are very optimistic about the Trade talks between Canada and India, and rightly so. All too often trade, we assume belongs to large companies. But the bigger opportunity is the engagement between the small and medium enterprises (SMEs). Canada’s SMEs are essential to Canada’s economic and social welfare, and we need them to lead the charge in India because they account for 45 per cent of GDP, 60 per cent of economic growth and 75 per cent of net employment growth. This gives it a robust huge opportunity in the area of technology share and exchange, joint investment and trade opportunities. T HE OP PORT UNI T Y
Even with the desire and the ability, many SMEs feel that the prospect of entering emerging markets such as India can seem overwhelming. Well aware of the opportunities, they are concerned with issues
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of corruption, culture, distance and bureaucracy. This is where there is an imperative need for organisations like the ICCC in Canada and ICBC in India to step-in and inspire confidence at both ends. The fourth round of Canada-India trade negotiations took place in Delhi from February 13 to 16, 2012 and have concluded successfully. The Trade talks which are aimed at deepening trade and investment ties are expected to benefit the small to medium-sized enterprises (SME), which are crucial to both the Indian and Canadian economies. In fact a key area of engagement in the CEPA talks is with the focus on SME’s and how the barriers can be neutralised to effectively propel this engagement.
For India, a trade agreement with Canada will eliminate or reduce tariffs on goods, liberalize trade in services and directly benefit SMEs. The SME sector has emerged as an engine of growth of the Indian economy. It has contributed significantly towards
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