Our Bureau
Ottawa
Mark Carney’s big win in Canada’s federal elections, leading the Liberal Party back to power, has set the stage for a potential reset in India-Canada relations after years of diplomatic strain. Carney, a former central banker and political newcomer, has made clear that rebuilding ties with India is a top foreign policy priority.
Carney’s victory comes after a tumultuous period marked by the 2023 diplomatic fallout, when then-Prime Minister Justin Trudeau accused “Indian agents” of involvement in the killing of Hardeep Singh Nijjar, a Canadian citizen and Khalistani separatist. The allegations led to the expulsion of diplomats on both sides, a freeze in trade talks, and a suspension of official visits, plunging bilateral relations to historic lows.
In his campaign, Carney pledged to diversify Canada’s trade partnerships and specifically named India as a key partner, emphasizing shared democratic values. “There are opportunities to rebuild the relationship with India,” Carney stated, signalling a shift from Trudeau’s approach, which many in New Delhi saw as too accommodating of Sikh separatist rhetoric.
Prime Minister Narendra Modi was quick to congratulate Carney, posting on social media that he looked forward to “unlocking greater opportunities” for both nations. India and Canada share robust people-to-people ties, with nearly 2.8 million people of Indian origin living in Canada, including over 427,000 students, which play a crucial role in Canadian economy.
The Indian government’s main concern remains the Khalistan issue, with New Delhi urging Ottawa to take stronger action against extremist elements. Carney’s government is expected to address these concerns more directly, while maintaining Canada’s welcoming stance on Indian immigrants, students, and tech professionals.
With Mark Carney, India is hopeful of a reduction in the influence of extremist Sikh elements on Canada’s foreign policy towards India.
A key area to watch will be the revival of the stalled Comprehensive Economic Partnership Agreement (CEPA), which could boost bilateral trade currently valued at CAD 13.49 billion. Sectors like AI, green energy, and higher education may see renewed cooperation as both nations seek to reduce reliance on China and the US.
