Despite the fallout between the two nations, India won't impose any measures to curb imports or investments from Canada, said reports quoting government sources.
The officials from both India and Canada were trying to resolve the dispute and the worsening diplomatic relations wouldn't spill over into either a bilateral trade dispute or impact investment, Reuters quoted unnamed senior officials.
The bilateral trade between Canada and India touched $8 billion in 2022. While India imports potash, lentils, and energy products such as coal, coke and briquettes among other goods from Canada, it exports consumer goods, garments, and engineering products such as auto parts, aircraft equipment and electronic items.
Canada has invested more than $3.6 billion in India with over 40% of that being in services and infrastructure, the report quoted Invest India.
Ottawa had in September paused talks on a proposed trade treaty with India.
Meanwhile, close on the heels of its 41 diplomats leaving India, Canada has announced that it was temporarily suspending in-person operations at consulates in Bengaluru, Chandigarh and Mumbai. The statement from the Canadian High Commission, or embassy, in New Delhi, said the services remain normal in the capital.
New Delhi had asked Ottawa to reduce its diplomatic presence in the country after Canadian Prime Justin Trudeau accused India of orchestrating the murder of Khalistani leader Hardeep Singh Nijjar. India denied the charges.
Canada's Immigration, Refugees and Citizenship Canada (IRCC) department also warned Indian citizens that there could be delays in processing visa applications. "Following India's intent to unilaterally remove immunities for all but 21 Canadian diplomats and dependents in Delhi by October 20, 2023, Immigration, Refugees and Citizenship Canada (IRCC) is reducing its number of employees in India from 27 to 5. IRCC will continue to accept and process applications from India, but reduced staffing levels are expected to impact processing times."