Ontario, Canada: The Heart of Indian SME Expansion Into North America

BANGALORE, INDIA: As Canada's economic driver, the Province of Ontario accounts for 37% of Canada's GDP, 34% of the country's industrial production and is home to 60% of Canada's foreign-controlled head offices. With over 97% of Ontario's businesses classified as Small- and Medium-sized Enterprises (SMEs)(less than 100 employees), the Province has nurtured an environment that ensures SMEs are globally competitive. Now, Indian SMEs can look to Ontario as the epicentre for their North American expansion.

Most companies know Toronto, the capital of Ontario, as a dynamic, multicultural, global city of opportunity, with the world's 8th largest stock market (based on equity market capitalization). However, few know that Ontario is home to a diverse economy with: 18,000+ICT firms; over 900 interactive digital media companies; 2.1 million vehicles assembled every year; a vibrant clean technology and energy sector;a water sector that is #8 worldwide for water-related citations, drawing on 19 water-related institutes; and a mining sector driven by a stable regulatory environment and the Toronto Stock Exchange which is the global leader in mining and metal listings.

As a commitment to building commercial relations between the two jurisdictions, Ontario established an office in India. Mr. Aaron Rosland, Counsellor, Ontario Government and his team, as the Ontario Government Representative in India, works in real-time with Indian SMEs to help them expand into North America through Ontario. We bring a unique perspective, having helped both Indian and Chinese companies develop business and establish facilities in Canada as well as move employees back and forth. He says, "Indian companies have an excellent reputation in Ontario and we are excited that greater numbers are considering Ontario as a base for their North American operations. We are available to meet with SMEs in person and will facilitate connections for them to make the investment process as smooth as possible."

Ontario has a strong innovation ecosystem and understands Indian SMEs are increasingly looking to access innovation to build their competitive advantage. Ontario's unique Network of Excellence (ONE) and Centres of Excellence (OCE) offers them a one-window approach for accessing research talent across the Province, leveraging research resources, collaborating with industry, academia and government and creating pathways to commercialization. R&D tax credits can reduce an investment of $100 to as little as $39 and a 10 year provincial tax exemption is available to companies which commercialize intellectual property developed by a Canadian university, college or research institution.

64 percent of the working age population in Ontario has a post-secondary education, which positions the Province as one of the best educated jurisdictions in the world. Ontario's 44 colleges and universities, plus its centres of excellence, research institutions and a culture of "continuous learning" ensure that Ontario employees are always on the cutting edge of education and training. The Ontario office in India works closely with Indian SMEs to connect them to schools, programs and skilled workers to ensure their access the right talent at the right time. "I've found that Indian SMEs are pleasantly surprised by the quality of education and graduates in Ontario. Once they meet with schools, graduates and experienced workers, they realize that Ontario employees are ready to get to work. This can result in immense cost and time advantages", said Rosland.

Last, but not least, Ontario's economic environment offers a very competitive tax structure, which attracts inbound investment, spurring innovation, and creating skilled jobs that support SMEs. Ontario's competitive corporate income tax rate (CIT) helps make the Province a potential hub for Indian SME's. The combined federal-provincial 26.5% CIT is lower than the average of G8 and G20 countries and lower than the average federal-state CIT rate in the United States.

In addition, Indian SMEs have ease of access to 461 million consumers (139 Million within a day's drive or 1 ½ hour flight from Toronto) and $17 trillion NAFTA region market while operating from one of the lowest cost, highest quality of life and best skilled locations in North America.

Ontario emphasizes it is open for business and by locating in the Province, Indian SMEs can access its business set-up facilitation, world-class innovation ecosystem, world-leading skilled workforce, and dynamic business environment for a successful expansion into North America.