Could India be Canada’s Future Economic Sweetheart? New APFC Survey Suggests Growing Canadian Investment Interest

Vancouver, BC - May 31, 2010 – China may be the economic powerhouse of the region, but Canadian companies are increasingly eyeing the mounting investment opportunities in India, according to the results of the latest Asian Investment Intentions Survey released today by the Asia Pacific Foundation of Canada.

“While China remains the top investment market for Canadian companies, the economic might of the region as a whole is a growing reality that Canadian companies ought to explore and seize. Canadian firms are slowly latching onto these investment opportunities, especially in growing economies in India and Southeast Asia,” said APF Canada President and CEO Yuen Pau Woo.

The survey found a strong rise of investment interest among Canadian companies into India, to 13 per cent in 2010 from eight per cent in 2005. Mr. Woo said this growing interest in India is not surprising; with average real annual growth of 8.75 per cent over the 2003 to 2007 period, India is emerging as an economic heavyweight in the region. Moreover, recent initiatives, including Prime Minister Stephen Harper’s visit to India in November 2009, have intensified talks on economic and trade opportunities between both countries, including the possibility of forming a Comprehensive Economic Partnership Agreement (CEPA). The results of this survey show that efforts are yielding results.

In his remarks at the launch of the survey, keynote speaker Export Development Canada President Eric Siegel said “Canadian investors are smart to be feeling bullish about investing in Asia. The long term competitiveness of Canadian companies will be increasingly determined by how well they can integrate into supply chains in the emerging economies of Asia.”

Overall, Canadian companies remain upbeat about Asian investment opportunities. Despite the constraints of the recent financial crisis, over 50 per cent saw no impact or a gain in their Asian operations during the crisis. More surprisingly, nearly 60 per cent saw an increase in revenue from Asian operations over the period of the crisis. The results echo the resilience of Asian economies in contrast to the ongoing economic turmoil affecting Europe and North America. Canadian companies remain generally confident about longer term increase in their level of investment in Asia. Some 55 per cent of companies are recognizing the shift of opportunity to service the growing markets in Asia, up five per cent from 2008.

This annual survey was conducted by the Asia Pacific Foundation of Canada between February and April 2010 among 504 companies with a 10.5 per cent response rate. The publication was supported in part by Western Economic Diversification Canada. The Asian Investment Intentions Survey, started in 2000, is an annual survey of Canadian companies with a permanent physical presence in Asia.

For further information on the survey, please click here.

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About APF Canada

The Asia Pacific Foundation of Canada, created by an Act of Parliament in 1984, is an independent, not-for-profit think-tank on Canada’s relations with Asia. The Foundation functions as a knowledge broker, bringing together people and knowledge to provide current and comprehensive research, analysis and information on Canada’s transpacific relations. It promotes dialogue on economic, security, political and social issues, fostering informed decision-making in the Canadian public, private and non-governmental sectors. The Foundation also provides grants to support policy research and informed discussion on Canada’s relations with Asia.

For additional information, please contact:

Trang Nguyen
Communications Manager
Asia Pacific Foundation of Canada
Tel: 604-630-1540 or 604-323-6781
Email: trang.nguyen@asiapacific.ca