How The Sikh Population Contributes To Canada's GDP

In a tit for tat move, the High Commissioner of Canada to India was summoned on Tuesday and informed of the Government of India's decision to expel a senior Canadian diplomat based in India. The concerned diplomat has been asked to leave India within the next five days.

This comes after Canada expelled a senior Indian diplomat and accused India's hand behind the fatal shooting of a Khalistani leader. The Khalistan movement is a separatist movement seeking to create a homeland for Sikhs by establishing an ethno‐religious sovereign state called Khalistan and this movement is very strong in Canada.

Sikhism in Canada has nearly 800,000 adherents who account for 2.1% of Canada's population as of 2021, forming the country's fastest-growing and fourth-largest religious group. The largest Sikh populations in Canada are found in Ontario, followed by British Columbia and Alberta.

Canada is home to the largest national Sikh proportion in the world (2.1%), and also has the second-largest Sikh population in the world, after India.

Needless to say, a growing percentage of Sikhs contribute to Canada's economic growth in some or the other form.

Canada Heading For A Recession?

Canada's economy unexpectedly contracted in the second quarter at an annualized rate of 0.2% and growth was most likely flat in July, a result that shows a significant probability of a recession in the coming months.

Also, rising inflation and historically high interest rates have triggered falling housing investment, which recorded its fifth consecutive quarterly decrease in the three months ended in June.

Amid the economic turmoil, the most impacted sector will be the employment sector. While 2023 has been the year where large multinationals have cut millions of jobs, the most impacted by job cuts are usually migrants or people who are on temporary visa.

Trade Ties Collapsing, What' Next

The diplomatic strains between India and Canada are now threatening trade ties, with talks on a proposed trade deal now frozen. Canada has given few details for the impasse while India has cited "certain political developments."

Bilateral trade in 2022 amounted to just C$13.7 billion ($10.2 billion) out of Canada's total of C$1.52 trillion, according to Statistics Canada.

In conclusion, 2023 have seen widespread declines in more than half of industries contributing to GDP, and if employment sees a modest drop futher, it will likely be called a recession in Canada.