Canada pension fund has invested over $2 billion in 9 Indian new-age companies

India has warned its citizens to “exercise utmost caution” while in Canada

Trade talks between India and Canada are in a deep freeze as tensions escalate between the two countries after Canadian Prime Minister Justin Trudeau claimed that the Indian government could be linked to the murder of Khalistani separatist Hardeep Singh Nijjar. India has dismissed the charge as absurd.

The events of the last four days, including tit-for-tat diplomatic expulsions, have seen the relationship between the two sides plunge to its lowest in recent memory, raising concerns about economic ties as well.

The Canada Pension Plan Investment Board (CPPIB), which invests money from the Canada Pension Plan (CPP) to generate returns, has made a slew of investments in Indian companies. These include the likes of new-age companies such as Acko and Zomato.

CPPIB invests money from the Canada Pension Plan (CPP) to generate returns

Apart from the new-age companies, CPPIB has also invested in legacy companies in India such as Kotak Mahindra Bank, ICICI Bank, Infosys, Wipro and several others. Several CPPIB-owned stocks have already taken a beating. 

Uncertainty looms as India has warned its citizens to “exercise utmost caution” while in Canada. Canada reportedly rejected the travel advisory.  There were also reports on September 21 of India suspending visa services for Canadians but later in the day, a section of media said that the firm handling the service had withdrawn the suspension notice.

Confusion may prevail over the visa service but there is little doubt that India's relations with Canada are in a free fall and it has several businesses and investors concerned.