International Trade committee  A huge priority for India, as well as Canada, is opportunities for youth. It's important, especially when the job environment and job opportunities in many larger companies, as well as in governments and government agencies, are declining. The opportunities for youth will come through youth starting out on their own.

International Trade committee  Yes, Mr. Shory, I fully agree that the Indo-Canadian community has a much greater responsibility to bridge the trade and our relationship with India. To that effect, the Indus Entrepreneurs organization has three chapters in Canada, whereby we are connecting over 400 different entrepreneurs with 16 chapters in India, where we have about 3,000 entrepreneurs who are members of these chapters.

International Trade committee  I think negotiations have been going on for three and a half years, and I know there are some sticking points between the two countries that would take time to resolve. In the interest of goodwill, as well as of promoting and harnessing the benefits of a comprehensive trade agreement, especially for the benefit of small and medium-sized enterprises and more so, unlisted start-up companies, it is very important that we conclude the agreement as soon as possible.

International Trade committee  I think we should recognize these issues, and perhaps educate and groom our business people to design contracts and to take steps of a preventive nature so that there would be minimal opportunities for dispute. That way, things would be much clearer and less likely to be misinterpreted by someone else.

International Trade committee  The trade commissioner services have been excellent. In terms of services and cooperation, the information and communication technology is low-hanging fruit. Both of our countries are very strong in that area and there are huge opportunities for working together in that particular area.

International Trade committee  Thank you for the question. I think for clarity we need to distinguish between foreign direct investment and portfolio investment in India. If you know a single specific company and you are interested in buying 50% or 40% or 30% of, for potential strategic reasons, India permits that investment from Canada, and many companies have done that.

International Trade committee  I believe many Canadian financial services companies would be interested in setting up shop in India, whether Canadian banks, Canadian mutual fund companies, Canadian asset managers, Canadian brokerage firms, or Canadian law firms. We recognize that the market opportunity in India is substantial, and we do have an interest in tapping into that market and offering better quality products and superior services to the Indian marketplace.

International Trade committee  That's exactly right. We also recognize that the real estate sector in India has been booming for the last so many years. In Canada, typically, real estate operators have real estate investment trusts that pool the funds and essentially buy various properties in different geographic areas, for diversification as well as proper management.

International Trade committee  I think the CEPA is as important to India as it is to Canada. They do recognize their own economic issues, but Indians are known to be slow decision-makers. They are over-conscientious, and as a result they sometimes don't come to the table right away. They do have their own political realities and upcoming elections, and all those issues are also at play in the negotiations.

International Trade committee  Thank you. The financial services, the legal services, and professional services segments of the market are essentially regulated. There are lots of hindrances to Canadian companies entering those markets in a bigger way. Therefore CEPA and FIPA and other agreements would definitely help.

International Trade committee  Because of my own experience in the service sector, I can definitely point to a number of barriers in the service sector that are hindrances to our trade.

International Trade committee  The services sector comprises 70 per cent of Canada's GDP and about 55 per cent of India's GDP. There would be a growth in merchandise exports but I believe a much larger opportunity for both countries is in the services sector, as it comprises a significant portion of our and India's GDPs.

International Trade committee  Thank you. It's a great honour and privilege to appear before the House of Commons Standing Committee on International Trade. The standing committee and Canada's negotiating team have put tremendous efforts into furthering our national interests, and we are very proud of you. I'll give you just a little background before I begin.