India-Canada Relations: Current Issues, Significance & Way Ahead

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Context (IE|TH|IE): India and Canada share a rich history of diplomatic and economic cooperation, but the recent assassination of a Khalistani separatist in Canada has triggered an extraordinary dispute.

Historical Ties

Colonial Connections: Both countries were part of the British Empire, forming early links.
Freedom Struggle: Many Indian migrants, especially Sikhs, settled in Canada during the freedom struggle. The “Swadesh Sevak Home” in Vancouver mobilised support for India’s fight against British rule.
Diplomatic Relations: Established in 1947 after India’s independence.
Diaspora and Migration: Canada hosts a significant Indian population, especially from Punjab, strengthening people-to-people ties.
Commonwealth: Both nations are part of the Commonwealth, promoting cooperation.

Nijjar Assassination Allegations: Canadian PM accused Indian intelligence agents of involvement in the assassination of Hardeep Singh Nijjar, a prominent pro-Khalistan activist residing in Canada.
Diplomatic Fallout: India strongly denied the assassination allegations, resulting in both nations expelling multiple senior diplomats, escalating into a major diplomatic crisis.
Visa Suspension: In retaliation, India suspended the issuance of new visas for Canadian nationals, while Canada simultaneously withdrew crucial consular services from key Indian cities.

Trade and Investment: Bilateral trade stood at $8.4 billion in 2024. India imports natural resources from Canada while exporting textiles, pharmaceuticals, and IT services.
Energy: Canada supplies uranium to India for its nuclear energy programs.
Education: Over 300,000 Indian students study in Canada, a top destination for higher education.
Technology and Innovation: India and Canada collaborate on innovation, especially in the IT and AI sectors, with initiatives like the Canada-India Joint Science and Technology Cooperation Agreement.
Environment and Climate Change: Both countries participate in global climate agreements like the Paris Agreement, aiming to combat climate change through technology exchange.
Agriculture: Canada exports lentils and pulses to India, while both nations work on agricultural research.

Economic Potential: The Early Progress Trade Agreement (EPTA), which is currently stalled, can further enhance strong trade links.
Strategic Interests: As democracies, both nations support multilateralism and align on global platforms like the G20, G7, and the UN.
Cultural Ties: The Indian diaspora in Canada, especially in Punjab-origin communities, is crucial in shaping bilateral relations.
Geopolitical Leverage: Strengthening India-Canada relations helps India secure allies within the broader global north, particularly in strategic forums like the Five Eyes alliance, where Canada plays a role.
Technology and Innovation Partnership: With Canada being a leader in sectors like AI and clean energy, deeper cooperation with India can drive growth in India’s technology sector.

Khalistan Movement: The rise of pro-Khalistan sentiment in Canada is a major irritant for India, which perceives it as a threat to national security. E.g. Glorification of Indian PM Indira Gandhi’s assassination.
Diplomatic Tensions: Ongoing investigations and mutual accusations have led to a breakdown in trust between the two countries.
Economic Disruption: The suspension of trade talks and visa services is affecting business and people-to-people connections.
Diaspora Politics: Canada’s domestic politics and the involvement of Sikh communities in shaping foreign policy have added complexity to relations.
Security Concerns: India’s concerns over Canada’s perceived support for extremist groups.

Regular high-level meetings through foreign ministers or bilateral summits can help rebuild trust. A third-party mediator could facilitate discussions to resolve the controversy.
Enhancing Trade: Resuming the Early Progress Trade Agreement (EPTA) talks and focusing on sectors like clean energy and digital technologies could boost bilateral trade.
Addressing Security Concerns: Canada can cooperate more closely with Indian intelligence agencies to address India’s concerns about pro-Khalistan groups. Joint counter-terrorism efforts could be initiated.
Multilateral Engagement: Collaborating in international forums like the G20 and UN to focus on global challenges like climate change, terrorism, and trade regulations will strengthen ties. For example, India and Canada collaborated in the WTO on trade disputes.
Diaspora as a Bridge: The Indian diaspora in Canada can lead initiatives in cultural diplomacy, fostering business partnerships, and soft power exchange to mitigate negative perceptions.
Environmental collaboration on renewable energy projects and technology transfer. E.g. International Solar Alliance and sharing clean energy technologies like green hydrogen.