India is prioritizing new energy supply
India’s economy has been booming, but the country has struggled to meet growing energy demand. India suffers from chronic energy shortages, with nearly half of all homes receiving no power as many as 12 hours a day, according to The Guardian.

Over the past week, several reports have come out that India is looking for new ways to meet its growing thirst for energy. Last week, an Indian delegation visited Iran in anticipation of international sanctions being softened against the country, while Prime Mi...

The Canadian Perspective

Stuart Bergman, Deputy Chief Economist and Director, Economic & Political Intelligence Centre for Export Development Canada:

We see India as having enormous potential as an economic partner for Canada, both in terms of trade and bilateral investment. And this is true even as the lower value of the Canadian dollar and the U.S. recovery boost sales to the United States. It would be foolish to ignore Canada's largest trading partner in light of growing demand South of the Border – a result of significant pent up demand in industries form autos, to housing, to consumer durables. But Canadian firms must look to other higher-growth markets, not instead of the U.S., but in addition to the U.S. There's a very strong business case for diversification.

Many of the emerging market (EM) countries stocked away huge amounts of cash during the 2004-2007 boom, they have governments that are actively encouraging domestic consumption through things like tax breaks and government subsidies, they show huge potential in areas like under-developed infrastructure (and have the need to address legacies of underinvestment), and their relatively young, and increasingly wealthy populations make for growing and captive markets. Emerging market economies like India can sustain far more exciting rates of growth than our traditional trade partners, as they converge with the developed world. We expect exports to emerging markets to grow by 4% this year and by 5% in 2015.

Canadian businesses are more comfortable doing business in India than they have ever been, but bureaucracy and red tape have been huge issues in the past. Businesses are hopeful that with the Modi government’s reform agenda will help make things easier. India is not at the same stage in development as China. While China has shifted from supplying the world with low-priced goods to expanding its domestic economy, India is focused on building its infrastructure. That means foreign companies that aim to sell to the middle class can do well in China but those focused on building airports, roads and ports see bigger promise in India. That said, however, a growing middle class in India is propelling demand for value-added goods and services in such fields as education, food, health-care, environment and financial services.  

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