PRIME MINISTER WITNESSES BUSINESS SIGNINGS IN INDIA

October 24, 2003
New Delhi, India

Prime Minister Jean Chrétien today witnessed the signing of new business deals by Canadian companies in New Delhi. During his two-day visit, the Prime Minister will discuss ways to further expand our political and economic relationship with India.

"The deals signed today are a good example of the growing partnerships and areas of cooperation we are establishing with India", said the Prime Minister. "India is the world's largest democracy and Canada's largest trading partner in South Asia. With an expanding middle-class and an emerging high-tech power with a young and dynamic business class, India represents an important market for Canadian goods, services and technology."

The new business deals signed today include:

• Four Seasons Hotels and Resorts of Toronto, Ontario, signed an agreement with Magus Estates Private Limited to operate a new 35 storey hotel in Mumbai. The $70 million hotel project will be developed by Magus Estates Private Limited and operated by Four Seasons under a long-term management contract. The hotel should be ready for occupancy in 2005. It will be the first Four Seasons hotel in India.

• Westland Incinerator Co. Ltd of Edmonton, Alberta signed a licensing agreement with Encon Furnaces (P) Ltd to manufacture incinerators in India. This agreement is valued at more than $4 million.

In addition to these signings, Birla Sun Life Insurance has also inaugurated its 33rd branch in October 2003. Established in 2001, Birla Sun Life Insurance – a joint venture partnership of Sun Life Financial, Toronto, Ontario Canada and the Aditya Birla Group – operates in 27 cities in India. To date, Sun Life Financial has invested more than $100 million in India in both life insurance and asset management.

In 1996, Prime Minister Chrétien led a successful Team Canada Trade Mission to India. At the time, the Prime Minister said that an increase in trade was a key objective. Since then, there has been a substantial increase in our trade activity. Canada-India bilateral trade in merchandise totalled approximately $2 billion in 2002; merchandise exports to India grew to $674 million and imports from India expanded to $1.3 billion.

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