Archive · 24 Jul 2025
Canada Scrutinizes India's Electronics Subsidies Amid Trade Talks
Canada is asking India questions about its financial help for companies that make electronics and semiconductors.
Canada wants to know more about the specific products and rules.
This is happening as India and Canada are trying to restart their trade talks.
India's electronics exports to Canada have increased a lot.
Canada is checking if these subsidies follow the rules of international trade.
Both countries are discussing how to make a trade deal to make it easier to trade goods and services between them.
Canada is scrutinizing India's subsidies for electronics and semiconductors at the WTO.
Canada has raised new queries about the SPECS scheme and state-level programs.
India's exports of electronic goods to Canada rose significantly from FY22 to FY25.
The scrutiny comes amid resumed trade talks between India and Canada.
Both countries aim to advance trade agreements, including an EPTA and a CEPA.
- Who
- Canada and India.
- What
- Canada is scrutinizing Indian subsidies for electronics and semiconductors.
- When
- The scrutiny began in July.
- Where
- At the World Trade Organization (WTO).
- Why
- To review India's subsidy programs and address trade concerns amid trade talks.
India
Canada
Subsidy Justification
India
The programs aim to build domestic capacity in a critical sector.
Canada
Not mentioned.
- Trade Value (FY24)
- $8.4 billion
- India's Exports (FY24)
- $3.85 billion
- India's Imports (FY24)
- $4.55 billion
- Electronic Exports to Canada (FY25)
- $214.57 million
- SPECS incentive
- 25% on capital expenditure