India-Canada diplomatic row: No impact on bilateral trade in goods so far

The diplomatic tensions between India and Canada have so far not impacted the bilateral trade in goods between the two countries, think tank GTRI said on Monday.

However, it added that as this dispute drags on, both nations will need to carefully manage their actions to avoid a full-blown economic fallout.

The bilateral merchandise trade between India and Canada actually grew slightly from USD 8.3 billion in 2022-23 to USD 8.4 billion in 2023-24.

India's imports from Canada increased to USD 4.6 billion, while exports saw a marginal dip, falling to USD 3.8 billion.

"These figures suggest that, at least for now, economic ties remain stable, unaffected by the diplomatic storm brewing in the background," it said.

"For now, the resilience of trade between India and Canada highlights an important lesson -- diplomatic tensions, while damaging, do not always spell disaster for economic ties. But as this dispute drags on, both nations will need to carefully manage their actions to avoid a