The Ministry of External Affairs reportedly told a weekly press briefing on June 12 that India is exploring ways to reset ties with Canada. PM of Canada, Mark Carney, recently invited PM Modi personally over a phone call to the Upcoming G7 summit to be held in Kananaskis, Alberta. Modi expressed his pleasure and congratulated his victory to be elected as 24th PM of Canada on March 14, 2025.
Indo-Canadian diplomatic relations were strained in recent years especially under the leadership of former PM Justin Trudeau who resigned earlier this year in January. India and Canada have been experiencing distorted relations since November 2023 over allegations raised by the then Trudeau government over The Sikh Separatist leader Hardeep Singh Nijjar’s assassination outside a Sikh temple in Surrey, on Canadian soil itself. According to Trudeau, Indian agents were involved in the assassination of Nijjar.
In May 2024, the Royal Canadian Mounted Police (RCMP) arrested three Indian nationals—Karanpreet Singh (28), Kamalpreet Singh (22), and Karan Brar (22)—on charges of first-degree murder and conspiracy in connection with Nijjar’s death. Canadian authorities are also investigating whether these individuals had links to the Indian government. India denied the allegations. Subsequently, both the countries expelled their top diplomats from each other’s country.
Whereas, India had accused Canada of nestling extremism in Canada’s Sikh diaspora and claimed that Canada has not yet provided any evidence.
How did India – Canada Relations begin?
India and Canada have shared bilateral relations since the 19th Century when Indians, especially Punjabis which included British Sikh Army officers and Veterans, emigrated to Canada. Now, Indians represent about 5% of Canada’s population. Significant Indian populations living in Canada have inhabited regions like Toronto, Vancouver, Calgary, Montreal, Winnipeg, Ottawa etc. Relations between the two countries strengthened with visits between leaders, like Indian PM Jawaharlal Nehru’s visit to the House of Commons of Canada in 1949 and the visit of Canadian PM Jean Chretien in 2003.
But, ever since Trudeau came to power, there has been significant cooperation and challenges faced by both the countries. Trudeau strained India-Canada relations in September 2023 over the killing of Hardeep Singh Nijjar who was a Sikh involved with the Khalistan Movement. This standoff between India and Canada has led to a prolonged diplomatic contention. This row further led to expelling each other’s envoys in 2024. Canada expelled Sanjay Kumar Verma, the Indian High Commissioner to Canada and other diplomats. In response, India expelled 6 Canadian diplomats from India.
Ahead of the upcoming G7 Canadian PM Mark Carney is set to rebuild relations with India. He stated that India is the fifth largest economy in the world and deserves to be a part of the G7 Summit. PM Carney personally invited PM Narendra Modi for the G7 Summit over a phone call. Modi is scheduled to visit Canada for the first time in a decade. Modi and Carney are also set to meet on the sidelines of the summit.
“We believe that the forthcoming meeting between the two leaders on the sidelines of the G7 summit in Kananaskis in Canada will offer an important opportunity for them to exchange views on bilateral and global issues and explore pathways to set or reset the relationship based on mutual respect, shared interests, and sensitivity to each other’s concerns,” said MEA spokesperson Randhir Jaiswal.
SECTORS AFFECTED BY THE DIPLOMATIC TENSIONS SINCE 2023:
Shifts in Higher Education
Following the diplomatic rift, the Education sector has suffered immensely. Canada has noted a 40% decline in education permits issued to Indian students. Moreover, Canada has terminated the Student Direct Stream Policy which has affected 90% of prospective students from Punjab to study in Canada. As a result, Indian students have started looking for alternative destinations for their education.
“Indians hoping to study in Canada should think twice because many students have ended up in substandard colleges with no job prospects despite spending lakhs of rupees, resulting in depression and suicide”, India’s former High Commissioner to Canada says.
India and Canada Trade relations
According to the Ministry of Commerce and Industry, Canada comprises less than one percent of India’s total trade worldwide. India and Canada have experienced a steadily increasing bilateral trade from 2014.
Contrary to the expectations for a heavy dip in trade after the 2023 case, there still has been an important increase in trade between both the countries. Key trade exports from India to Canada include jewelry, gems, precious stones, marine products, ready-made garments and pharmaceuticals. Canada’s key exports include energy products, forest products and fertilizers.
Even after the diplomatic standoff, India and Canada’s two way trade has seen an increase, with a rise from C$12.6 billion in the year 2023 to C$13.3 billion in the year 2024. Indian exports have risen up from 2$ billion to 3.8$ billion in 2023-24 and in the same time Canadian imports have risen from 4.1$ billion to 4.6$ billion.
Tourism
Tourism was majorly affected by the murder of the Khalistani activist. In September 2023, India halted visas for Canadians citing security threats to Indian missions in Canada which led to a reduction of Canadian tourists to India. While the halt continued for only a month, it resulted in a loss of income for the Indian tourism sector.
People-to-people relations
The Indo- Canadian diaspora also popularly known as East Indian diaspora form a binding force between India and Canada. With nearly 1.3 million Indian origin Canadians living in Canada account for up to 5% of the total Canadian population. This vibrant community is concentrated mainly in Toronto, Vancouver, Calgary, Montreal, Ottawa, etc. This interconnection between the two countries plays a crucial role for enhancing the cultural and economical ties for future cooperation and collaboration.
At present, approximately 400,000+ Indian students are currently studying in Canada thereby conducting cultural exchanges and deep educational programmes.
Diaspora politics is one of the biggest threats and issues currently in Ottawa due to the presence of Khalistani elements present in Canada. These communities exert pressures and discomfort for the running government in Ottawa. These politics significantly impact Canadian foreign policy by majorly influencing the diplomatic relations, trade and aid of the country.
Conclusion
In recent times, Canada and India have experienced several challenges and missed opportunities for deeper co -operation. With the new Canadian PM at the helm, the future of India-Canada relations looks promising. Both nations can capitalize upon this juncture to forge a stronger partnership, learning from past experiences to build a more robust and mutually beneficial relationship. As their geopolitical aspirations converge, India and Canada can work together to drive growth, innovation, and cooperation, unlocking new opportunities for their citizens and the global community.
This renewed momentum can foster increased trade, investment, and cultural exchange, solidifying the ties between the two nations. By leveraging their complementary strengths and shared values, India and Canada can navigate global challenges and create a brighter future for generations to come.
(Dr. Murthy Devarabhotla is a distinguished global leader in consulting, trade, diplomacy, and cultural collaboration. His illustrious career and impactful contributions make him an exemplary candidate for the role of Honorary Consul General of Thailand. Appointed as an Investment Advisor to the Government of Jamaica, he has strengthened bilateral ties through trade and cultural initiatives. His strategic partnerships with entities such as Ramoji Film City and the Billionaires Network Hyderabad further highlight his commitment to global engagement. This article has been written by Dr Murthy Devarabhotla, Global President, The Diplomatic Club, India, as part of a special arrangement with TFI)
