India and Canada have agreed to explore the possibility of cooperation in diamond mining on a mutually beneficial basis, Indian Ministry of Commerce and Industry said here Wednesday.

This was discussed at a meeting between Indian Minister of Commerce and Industry Kamal Nath and Canada's Ontario Province Minister of Economic Development and Trade Joseph Cordiano Tuesday.

Kamal Nath mooted the idea of investing in diamond mines in Canada for sourcing of rough diamonds which could be then cut and polished in India for exports.

He explained how India had emerged as the top exporter of cut and polished diamonds in the world, while there was good scope for Canadian mines being tapped for roughs.

Both the Ministers underlined the potential for expanding trade and investment ties between India and Canada.

India is the 37th largest source of direct investment in Canada, with more than half of the Indian investment there being in pulp and paper.

There has also been a steady increase in Indian investment in Canada in the last decade. Cordiano said that Ontario would welcome increased Indian investment in different sectors.

He stressed the need to diversify trade in terms of both products and markets as well as the need to enhance competitiveness in an era of globalization.

Source: Xinhua