Industry experts expressed concern that the current standoff could delay new trade deals and movement of professionals between the two countries. He stressed that a ‘conducive political environment’ is necessary for business growth.
भारत-कनाडा तनाव: घरेलू आईटी, तकनीकी कंपनियों की बढ़ाई टेंशन
As diplomatic relations between India and Canada continue to deteriorate, domestic IT companies, especially those with business and offices in Canada, are exercising caution. The approach of these companies is ‘wait and watch’.
Indian IT companies such as Tata Consultancy Services (TCS), Infosys and Wipro have invested heavily in Canada and have a significant presence there. These tech players have invested millions of dollars and created thousands of jobs.
Industry experts expressed concern that the current standoff could delay new trade deals and movement of professionals between the two countries. He stressed that a ‘conducive political environment’ is necessary for business growth.
Infosys has centers in Toronto, Calgary and Vancouver. In July, Infosys set up a new subsidiary in Canada under its US arm Infosys Public Services.
The headquarters of Infosys Public Services Canada in Ottawa will be spread over 10,000 square feet. This expansion follows a series of Infosys investments in Canada.
“The announcement of IPS Canada is the latest development in a series of investments by Infosys to grow its headcount to more than 7,000, with a commitment to add 8,000 employees by 2024,” the company said in a recent statement.
NASSCOM said they are in close touch with their members in Canada. Will engage with stakeholders to track impact, if any, and support IT and tech companies as needed, as New Delhi suspends visa services for Canadian citizens ‘until further notice’
“We are in close touch with our members in Canada and as per their feedback there is no immediate concern. Since this is an evolving situation, we are tracking any possible areas of impact,” Nasscom said in a statement. “We will continue to engage with stakeholders who may need support.”
Like the IT giants, the increasing tension between the two countries can become a matter of concern for Indian startups. Canada’s Start-up Visa program has attracted many entrepreneurs to start their businesses in the country.
Canada Pension Plan Investment Board is a major investor in the Indian startup ecosystem, having invested in new-age companies like Zomato, Nykaa and Byju’s.
Canada is an important source of capital for venture capitalists (VC) and private equity (PE) due to its sovereign wealth and pension fund pool. In January this year, leading technology services and consulting company Wipro Limited announced the opening of its latest Wipro-AWS Launch Pad Center in Toronto. This will enable customers in Canada to accelerate their move to the cloud, leveraging Wipro and AWS expertise to build industry leading solutions.
According to the company’s website, TCS teams in the US and Canada include ‘more than 53,000 diverse, agile and highly trained innovators who help nearly half of the Fortune 500 turn their goals into reality.’
Canada also ranks among the top 10 countries in terms of assets of foreign portfolio participants or foreign portfolio investments (FPIs). According to National Securities Depository Limited (NSDL) data, the cumulative assets held (AUC) of FPIs coming from Canada is around Rs 1.77 lakh crore.
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