Export Development Canada (EDC) provided an annual record in financing during 2015 to facilitate business between Canadian and Indian companies. The amount is estimated at almost US$1 billion.
“2015 was EDC’s most successful year to date in India, and there’s a lot more room to grow,” said EDC’s chief representative in India Nathan Andrew Nelson. “We’ve been working closely with Global Affairs Canada and provincial trade partners to provide Canadian companies with direct access to many of the country's top-tier companies.”
Overall, Canadian and Indian companies used more than an estimated C$2 billion of EDC services for their trade transactions in 2015.
EDC’s permanent representatives in Mumbai and New Delhi made more than 100 introductions between Indian buyers and Canadian companies in 2015, and co-led three significant trade missions in the oil and gas, information and communications technologies, and infrastructure sectors.
As an example of how EDC leverages relationships with top-tier Indian companies, EDC established a new US$500 million financial protocol agreement for the Tata Group in 2015. The financing agreement allows Tata to access the financing for transactions involving Canadian companies across all of Tata’s global supply chains.
EDC has provided more than US$3.7 billion in financing over the past decade for Indian companies that have, or are open to, business with Canadian companies.
EDC has been doing business in India for more than 30 years and has had a permanent presence there since 2005.
Nathan Andrew Nelson noted that EDC would be adding staff to its Mumbai office this year to handle increased demand for its services, reflected in the following growth figures relevant to Indo-Canadian trade:
- Exports of goods to India grew by 52% between 2010 and 2014, and exports of services grew by 58% during the same period.
- Overall bilateral trade in goods between Canada and India totalled C$6.3 billion in 2014 while trade in services in 2013, the last year for which figures are available, totalled C$1.6 billion.
- India accounted for 6.1% of Canada’s total global exports of goods in 2014, up from 5.2% in 2010.
- India’s GDP is nearly US$2 trillion and is forecast to grow by more than 8% this year, the fastest growth in the G20
EDC plans to continue its focus on the key relationships that helped propel the record-setting year, while also reaching out to even more Canadian companies doing business with the world’s ninth-largest economy.
EDC is Canada’s trade finance agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities.