Toronto: Seeking to boost its commercial relationship with India, Canada has demanded more access to "key" markets in the country including in agriculture and retail sector.
Canadian Foreign Minister Peter Mackay said his country has formulated a commercial strategy to boost trade and investment relationship with India.
But "there are many obstacles to gaining access to Indian market. A number of barriers remain in financial, agri-food and agriculture sectors," the minister said at a function organised by the Canada India Business Council here on Thursday.
Mackay pointed out that Foreign Direct Investment (FDI) is not permitted in agriculture, legal service and retail sectors in India. In financial sector, there is a 26 per cent cap on foreign equity in the insurance market.
"As a result of these obstacles, our investment relationship is relatively small – $145 million of Indian FDI into Canada in 2005, and $204 million of Canadian direct investment into India," he said.
"Canada needs improved access to certain areas of the Indian market for Canadian businesses, as well as increased foreign direct investment flows to Canada from India."
He said that Canada was encouraging more export-ready Canadian companies to pursue opportunities in India and increase knowledge of Canada's commercial capabilities and strength in India's corporate and private sector.
Mackay also said that Canada would implement the science and technology agreement with India, which would assist in building new partnerships and in the commercialisation of research and development.
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