Canada’s investments to India rise despite growing tensions, shows data

A report by Asia Pacific Foundation released in May had found that between 2011-2023, pension funds from Canada accounted for majority of investments to Asia Pacific region, of which India is a part.

The importance of the Canadian pension funds can be gauged from the fact that they lead other countries in terms of assets or cumulative investments.

Pension funds from the US have contributed $50 billion, while Norway has invested $30.9 billion in India.

Further analysis shows that a move away from China has also helped attract more investments from Canada in recent years.

While China had a 19 percent share of Canada’s overall Asia Pacific investments until 2018, between 2019-2023 its share declined to 3 percent.

“As Canadian pension funds diversified away from China in the last five years, India has moved into second place, accounting for 25 percent of Canadian pension funds’ investment flows in the region from 2019 to 2023, up from 10 percent in the 2003-2018 period,” said Asia Pacific Foundation in its Investment Monitor report in May.

Further analysis shows that most of the investments from Canada have also been concentrated in sectors which have contributed to India’s growth. Real estate investment and services, financial services and industrial transportation for instance, accounted for 58 percent of total investments in the two decades.

Tensions with Canada escalated earlier this week, with India expelling Canadian diplomats and recalled its ambassador and other diplomats, after Canada named them in assassination plot of Sikh separatist Hardeep Singh Nijjar.