Business owners in Quebec are worried about the possible impact of the diplomatic conflict that has just broken out between Canada and India.
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On Monday, Prime Minister Justin Trudeau threw a spanner in the works when he claimed the Indian government was likely involved in the killing of a Sikh activist in British Columbia in June. New Delhi described the allegations as “absurd”.
“It was definitely a shock when you woke up,” says Éloïse Harvey, CEO of EPIQ Machinerie, an industrial equipment manufacturer in Quebec.
In fact, Ms Harvey visited the South Asian country last week to celebrate the 10th anniversary of the company’s Indian subsidiary and inaugurate a third factory there. EPIQ employs around 340 workers and engineers in India, compared to 300 in Quebec.
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” A bit sad “
“It’s a little sad because Canada and India have been working very hard in the last few months to encourage Canadian and Quebec companies to establish themselves in India or discover the Indian market,” notes the business manager.
Investissement Québec also organized an event on business opportunities in India last week, attended by Éloïse Harvey.
She remains optimistic and believes that “business ties between Canada and India are strong and deep enough.” [le commerce] Don’t be too concerned.”
On the other hand, she suspects that India will be tempted to impose retaliatory measures on Canadian companies – in the form of “bureaucracy”.
Big customer in India
Jean-Guy Lacombe, CEO of the electrical switch manufacturer Vizimax, is also looking. One of its major customers is Power Grid Corporation, an Indian state-owned company.
Jean-Guy Lacombe, CEO of Vizimax. Photo from LinkedIn
“It is certain that it could have an impact,” he admits.
Fortunately, with Vizimax present in around 40 countries, the company can explore other markets if India turns its back. Last year, the company exported 80% of its production outside of Canada.
A large playground for the Caisse de dépôt
The Caisse holds $8 billion in assets in India, which is about 2% of its portfolio. There has been an office in New Delhi since 2016. The institution has invested particularly in highways, energy producers, real estate and the financial sector. The Caisse declined to comment yesterday on the possible impact of the diplomatic cold between Ottawa and New Delhi.
Photo from LinkedIn
Large companies with a strong presence
Several Quebec Inc. heavyweights are based in India. CGI, the information technology giant, operates five offices and service centers in the country, employing more than 18,000 people. The engineering firms WSP and AtkinsRéalis also have a strong presence in India, each with around 4,000 employees. CAE, a provider of flight training solutions, employs more than 300 people in the country. Canam has set up an engineering office there.
Exports are increasing
Quebec’s exports to India rose 89% to $1.16 billion in 2022. Imports from the country reached $2.16 billion, up 53%. “The Ministry of International Relations is closely monitoring the situation,” a spokeswoman, Sylvie Leclerc, told the Journal. […] The safety of employees at the Quebec office in Mumbai is a priority. The 4 employees of Indian origin on site are doing well. The head of the office has been in Quebec for several days for personal reasons. »
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