Fast-tracking India, Canada relations

Hindustan Times

26-05-2025

Liberal Party leader Mark Carney's victory in Canada's general election sparked hopes for the rebuilding of the relationship with India, which touched an all-time low after his predecessor Justin Trudeau's allegations about an Indian link to the murder of a pro-Khalistan separatist. The phone call between external affairs minister S Jaishankar and his Canadian counterpart Anita Anand appears to be another step aimed at the resetting of bilateral ties. During their conversation on Sunday, the two ministers explored ways to strengthen bilateral relations and economic cooperation against the backdrop of speculation in diplomatic circles that India and Canada are set to post new high commissioners in each other's capitals – they withdrew them after Trudeau's allegations -- and resume talks on a trade deal that stalled two years ago.
Though Prime Minister Narendra Modi welcomed Carney's emergence as the new Canadian Prime Minister, there was little movement at the level of the top political leadership of the two countries – till Sunday. Both Carney and Anand have previously spoken about the importance of Canada's relations with India and a clear signal about the reset of the relationship getting underway will be an invitation for Modi to attend the outreach session of the G7 Summit to be hosted by Canada next month.
There are compelling reasons for a reset in bilateral relations despite the blow dealt by Trudeau's accusation and the subsequent downgrading of diplomatic ties. In recent years, two-way trade in goods and services has hovered at around $20 billion, with considerable potential for growth, and Canada has emerged as a key supplier of items ranging from lentils to uranium ore. Given the Trump administration's repeated targeting of Canada on trade issues, New Delhi should be an ideal candidate in Ottawa's search for new economic partners. Canada is also home to almost 1.8 million Indo-Canadians and another million non-resident Indians, one of the largest Indian diasporas anywhere. The Canadian side has firmed up an Indo-Pacific strategy that perceives India as a critical partner because of the common commitment of the two countries to a rules-based international system at a time when China has stepped up its aggressive activities in the region. The security agencies of the two countries have also resumed engagements on a range of issues related to the activities of pro-Khalistan elements and trans-national criminal gangs. In all these efforts, Anand appears better placed than her predecessors to protect Canada's interests while simultaneously taking on board India's concerns about the Khalistan issue.
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