China remains the top investment market for Canadian companies, but the growing opportunities in India are grabbing Canadian companies, according to the results of an investment intentions survey released in Vancouver on Monday.

The annual Asia Investment Intentions Survey was conducted by Asia Pacific Foundation of Canada (APF) between February and April, 2010, among 504 Canadian companies with a permanent physical presence in Asia. The response rate is 10.5 percent.

The survey found that those companies claiming their main Asian activities are in China have the highest rate, that is 21.1 percent, while the companies claiming their main Asian activities are in India or other Southeast Asia account for 13.4 percent respectively.

As for what counties or areas they are likely to invest in the next 12 months, 19.2 percent of the Canadian companies choose China as the leading destination while 12.8 percent mark India.

Yuen Pau Woo, CEO of APF, a think tank on Canada's relations with Asia, said the results showed while China remained the top investment market for Canadian companies, "the economic might of the region as a whole is a growing reality that Canadian companies ought to explore and seize."

"Canadian firms are slowly latching onto these investment opportunities, especially in growing economies in India and southeast Asia," he added.

The survey saw a strong rise of investment interest among Canadian companies into India, to about 13 percent in 2010 from eight percent in 2005.

According to Yuan, this growing interest in India is not surprising as India is emerging as an economic heavyweight in the region. Recent initiatives, including Canadian Prime Minister Stephen Harper's visit to India in November 2009, have intensified talks on economic and trade opportunities between both countries, including the possibility of forming a Comprehensive Economic Partnership Agreement.

The results of this survey show that efforts are yielding results, Yuan said.