India-Canada investment protection pact soon, says envoy

India nad Canada will soon sign an a foreign investment protection and promotion agreement (FIPPA) to safeguard investors' rights in the two countries and boost bilateral economic ties, S M Gavai, High Commissioner of India to Canada, said.

The agreement will promote economic relationship between the countries and accelerate two-way investments, he said while addressing top business professionals at a function organised by Blake, Cassels and Graydon in Toronto on Friday.

The agreement, designed to protect investors by defining their legally binding rights and obligations, would give a new impetus to India-Canada economic relations, Gavai said. FIPPA is intended to improve access for Canadian firms in a rapidly growing Indian market, he added.

"Canada and India have an enormous amount of economic and commercial potential," Gavai said. Dismissing concerns that the deal would jeopardise the Canadian job market, he said, Indian investment would help the Canadian economy and bring more jobs to Canada.

Gavai invited Canadian investment in infrastructure, energy, agriculture, and food processing and tourism sectors.

Total trade between India and Canada in 2007-08 stood at $32.39 billion while Canada's exports to India  rose 40 per cent.