India, Canada diplomatic row will not have material impact on exports: EEPC

The diplomatic row between India and Canada will not have a material impact on the country's exports, according to apex engineering body EEPC. India's exports to Canada stood at USD 4.1 billion in 2022-23.

The export goods include pharmaceuticals, gems and jewellery, textiles, and machinery, while imports (USD 4.06 billion) include pulses, timber, pulp and paper, and mining products.

"We do not believe that the stand-off with Canada will have a material impact on our exports and trade, given our long-standing relationship. We expect the current stand-off to be temporary and to be resolved," EEPC (Engineering Export Promotion Council of India) Chairman Arun Kumar Garodia told PTI.


He expressed hope that the stand-off would be resolved soon and India's outbound shipments to Canada will continue to grow.

"India and Canada have been good partners as far as trading and cultural relations are concerned, for a significant time. The current stand-off between India and Canada seems to be a temporary one, and I'm sure that it is going to be resolved diplomatically," Garodia said.

He added that though the talks for the proposed free trade agreement have been paused, it would resume as soon as political issues settle down.

Engineering exporter Nipha Group director Akash Shah said there would be no material impact on exports, and that trade would continue, and he hoped that the ongoing stand-off would be settled soon.

The comments come in the backdrop of an intense diplomatic row that erupted following Canadian Prime Minister Justin Trudeau's allegations of a "potential" involvement of Indian agents in the killing of a Khalistani separatist in June. India has rejected the charge as absurd.