Canadian businesses must rely less on U.S. and consider India
By agencies   |   Monday, 04 April 2005, 19:30 IST
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OTTAWA: Canadian Trade Minister Jim Peterson has asked Canadian businessmen to "wake up," and shake off their reliance on next-door neighbor America and consider India. Free trade agreements have made Canadian firms too complacent, letting their international competitors pass them by, Peterson warned before beginning a five-day trade mission this week to India. There lies a major opportunity barely tapped by Canadian entrepreneurs, whose direct investment in the Indian market reached just $184 million in 2003, he said. "It has been so easy for Canadians to access the U.S. market because of free trade, because of proximity, because we have had a strongly growing U.S. market for the last decade," added the minister. That has made domestic firms unwilling to look beyond their continent for opportunities, which means more nimble competitors will get ahead. "Canadian businesses have not had to look elsewhere in order to prosper," said Peterson. "Globalization is upon us. I want Canadians to wake up to the challenge of globalization and the great opportunities they present." It's a lucrative area of business: India is expected to double its investment in science and technology to $8.25 billion over the coming decade. India represents enormous opportunities, especially for businesses willing to take the time to develop partnerships with local firms, said Jay Myers, economist with Canadian Exporters and Manufacturers. “A survey of members last year found that 11 percent expressed interest in doing business with India - a strong figure that shows ‘good potential’,” added Myers. Partnerships with India-based operations give Canadian firms an opening for greater sales in other parts of Asia, the Middle East as well as within India itself.

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