Copyright infringement not intended
Picture Courtesy: ddnews
The India-Canada bilateral relationship, rooted in strong democratic values and people-to-people ties, needs the resolution of recent diplomatic and geopolitical strains to fulfill its potential and contribute to global stability.
|
Read all about: India and Canada Strategic Partnership |
Early Years (1947-1970s)
India and Canada established diplomatic relations in 1947. Their early relationship was cooperative and warm due to their shared Commonwealth membership.
Canada was a key development partner for India, providing aid and technical assistance, including for India's nuclear program.
Period of Strain (1974-1990s)
Relations cooled after India conducted its first nuclear test in 1974 (Smiling Buddha), using technology from a Canadian-supplied CIRUS reactor. This led Canada to freeze its nuclear cooperation with India.
The relationship further deteriorated following the 1985 Air India Flight 182 bombing by Canada-based Khalistani extremists, a tragedy that created lasting friction.
Renewed Engagement (2000s-2018)
India's economic liberalization in the 1990s opened new avenues for partnership. High-level visits and the signing of the Nuclear Cooperation Agreement in 2010.
The relationship was elevated to a 'Strategic Partnership' during Prime Minister Narendra Modi's visit in 2015.
Diplomatic Crisis (2023-2024)
In 2023, Canada-India relations severely deteriorated after Canada's Prime Minister accused the Indian government of involvement in the killing of Khalistani separatist Hardeep Singh Nijjar on Canadian soil, leading to reciprocal diplomatic expulsions and the suspension of trade and visa services.
The 2025 Reset
Following a change in Canadian leadership and a meeting between the Prime Ministers of both countries at the G7 Summit in June 2025, a conscious effort to rebuild trust began.
Both leaders adopted a "New Roadmap for India-Canada relations" in October 2025, aimed at restoring stability and advancing cooperation.
Economic & Investment Partner: Canada provides advanced technology, critical minerals, and investment. Canadian pension funds have invested over CAD 75 billion in India's infrastructure and market. (Source: MEA)
Energy Security: Canada, an energy superpower, possesses vast uranium, natural gas, and oil reserves vital for India's increasing energy demands.
Access to Critical Minerals: Canada is a key potash supplier with large reserves of other critical minerals vital for India's manufacturing, defence, and clean energy sectors.
Higher Education Hub: Canada is a leading destination for Indian students. In 2023, Canada hosted over 1 million international students, with Indians comprising the largest group at 37% of study visa holders.
Geopolitical Alignment: As democracies sharing an interest in a rules-based international order, both are key G20 and Commonwealth partners with converging Indo-Pacific interests.
Major Economic & Trade Partner: India, a fast-growing major economy, is a vast market for Canadian goods, services, and agricultural products, and a key partner in Canada's Indo-Pacific Strategy.
Source of Skilled Talent: Indians are the largest immigrant group in Canada. The 1.8 million-plus Indian diaspora boosts the Canadian economy and multicultural landscape.
Diversification of Trade: India offers a major growth opportunity as Canada diversifies economic partnerships beyond the U.S.
Investment Destination: Indian IT companies (e.g., TCS, Wipro, Infosys) are increasingly expanding in Canada, boosting job creation and innovation.
Despite recent political challenges, cooperation continues in several key areas, guided by the New Roadmap of October 2025. Total bilateral trade in goods and services reached $23.66 billion in 2024
|
Area of Cooperation |
Key Details & Recent Initiatives |
|
Trade & Investment |
|
|
Energy & Critical Minerals |
|
|
Science, Technology & Innovation |
|
|
Education & People-to-People Ties |
|
|
Security & Defence |
|
Khalistani Extremism in Canada: India is concerned about Canadian territory being used for anti-India activities, such as fundraising for extremism and glorifying political violence.
Diplomatic and Political Trust Deficit: The 2023-24 crisis damaged mutual trust; rebuilding confidence among political and security agencies will take time and mutual efforts.
Trade Negotiations: Unresolved non-tariff barriers and market access issues have stalled Early Partnership Trade Agreement (EPTA) negotiations, impeding deeper economic integration, trade growth, and supply chain resilience.
Differing Foreign Policy Priorities: Differences in approach towards global issues, including engagement with China, can impact strategic alignment.
Reactivating Dialogue Mechanisms: Restart all bilateral forums, including ministerial dialogues (trade, finance, energy) and the CEO Forum.
Focusing on Economic Complementarities: Prioritizing cooperation in sectors with clear win-win potential like critical minerals, clean energy, and high technology to build positive momentum.
Strengthening Security Cooperation: Enhance law enforcement cooperation against shared security threats like terrorism and transnational crime, respecting core concerns.
Leveraging People-to-People Ties: Leverage the strong Indian diaspora and student base to build goodwill and enhance cultural and economic ties.
Calibrated Diplomacy: Moving away from public recriminations ("megaphone diplomacy") towards quiet, sustained dialogue to resolve contentious issues.
Conclusion
The India-Canada relationship's strategic potential is currently hindered by the unresolved issue of Khalistani extremism in Canada, requiring concrete action from Canada to address India's national security concerns for the partnership to stabilize and prosper.
Source: PIB
|
PRACTICE QUESTION Q. Discuss the multi-dimensional impact of the diplomatic standoff between India and Canada. 150 words |
The primary cause is the political space and perceived inaction by Canada against anti-India Khalistani extremist and secessionist groups operating on its soil. Tensions escalated after the former Canadian Prime Minister alleged Indian government involvement in the killing of Hardeep Singh Nijjar, a designated terrorist by India.
The dispute has created significant anxiety and uncertainty for the large Indian student community. They face concerns about potential visa processing delays, a less welcoming atmosphere, and possible discrimination. Education consultants have also reported a decrease in new inquiries and applications from India for Canadian institutions.
Canada's Indo-Pacific Strategy identifies India as a "critical partner." The strategy emphasizes the importance of growing economic ties, building resilient supply chains, and expanding market access with India, based on shared democratic values and a commitment to a rules-based international order. However, the current diplomatic crisis hinders the realization of these strategic goals.
© 2025 iasgyan. All right reserved