Mahindra Shuts Down Canadian Operations: Anand Mahindra Company Exit

Impact of Escalating Dispute Between India and Canada on Business

The ongoing dispute between India and Canada is now affecting businesses. Tensions have been rising between India and Canada, with India recently suspending visa issuance to Canadian citizens. Amidst these escalating tensions, the Mahindra Group has also dealt a significant blow to Canada. Anand Mahindra’s Mahindra and Mahindra has announced the termination of its partnership with Canada-based company Reson Aerospace Corporation. Mahindra and Mahindra held an 11.18% stake in Reson Aerospace Corporation.

Following this decision by Mahindra and Mahindra, Canada has suffered a major setback. However, it should be noted that Canada’s Pension Fund has heavily invested in many Indian companies. According to public disclosures, the Canada Pension Plan Investment Board’s holdings in Indian companies amount to more than INR 28.7 billion. These companies include Zomato, Paytm, Indus Tower, Nykaa, Kotak Mahindra Bank, and Delhivery.

Canada’s Prime Minister Trudeau has accused India of extrajudicial killings in his home. It is safe to say that relations between India and Canada are currently strained. The relationship between the two nations has deteriorated due to the extradition of Khalistani terrorists sought by the Canadian government. Moreover, this year in June, the killing of Hardeep Singh, a Canadian citizen, who was declared a ‘terrorist’ by India in July 2020, further escalated tensions. Prime Minister Trudeau has made this accusation against India in his home. As a result, tensions have escalated between both countries.