The Canadian TradeCommissioner Service

Indian investment in

Canada

An Overview

October 2011

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India-Canada FDI

 2005 2006 2007 2008 2009

Canadian Direct Investment in India

$ 319 $ 677 $ 506 $ 785 $ 601

Indian Direct Investment in Canada

$ 171 $ 211 Unavailable $ 2,667 $ 2,972

Total $ 490 $ 888 $ 506 $ 3,452 $ 3,573

Source: Statistics Canada, IMF. Figures in C$ millions

Note: Publicly available stats likely understate magnitude of Indian investment into Canada – some occurs via third parties incl US.

 

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Trade

Trade

Canadian exports to India: $ 2,088,674,780Canadian imports from India: $ 2,123,036,802

Goal: Triple trade by 2015

May 2011Sources include: Statistics Canada, IMF

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South India:

Key Indian investors in Canada – South India

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North India:

Key Indian investors in Canada – North India

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Western India:

Key Indian investors in Canada – Western India

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Priority sectors for FDI

• ICT• Lifesciences• Financial Services• Resources

Areas of potential downstream:

Aviation, Automotive & Cleantech

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Case Study – Wipro Technologies

Company Overview & Business:

• 4th largest Indian software services company

• 110,000 employees world wide with $ 5.27 billion sales in 2010-2011.

• Over 50 industry specific ‘centres of excellence’

Key Markets:

• North America, South America, Europe, Africa, Asia Pacific and Middle East

• Clients include top 500 fortune companies in the world

• Over 90% revenues from overseas market

Overseas Investments:

• 72 software development centres across the globe

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Investment in Canada:

•In 2002, set up first global development centre at Windsor, Ontario with 300 employees.•In Feb 2011, set up second global development centre in Mississauga, Ontario with 250 employees.•Planning to set up third development centre in Vancouver, British Columbia

Objectives:

To establish a disaster recovery software development centre in North America, provide services to USA as near shore destination and act as proximity centre to Canadian clients.

Description:

•Sales, marketing and software development team in Windsor and Toronto•Key Canadian clients include Telecom, Financial, Insurance, Manufacturing, Logistics, Utilities, Transportation sectors

Case Study – Wipro Technologies

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Reasons to Invest:

•Disaster recovery centre in safe zone of Windsor

•Access to NAFTA markets

•Access to customers and market expansion

•Proximity and near shore advantage

•Availability of skills, technologies and infrastructure

Case Study – Wipro Technologies

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FDI Program in India

Focus on• After-care • Qualified leads / prospects (investment

banking approach)

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Challenges

• Brand recognition• Connectivity- distance (no direct flights)• Economic slow down• Competition (regional/global)• Strong domestic market• Greenfield v/s M & A

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Way forward

• Continue to focus on After-care• Enhance brand recognition• Promotional material i.e. presentations,

sectoral information, testimonials• Incoming and outgoing Missions• Develop additional tools / provide specialised

training for trade commissioners• Work closely with partners