Reset in India–Canada Relations
- After a 2-year diplomatic standoff, both countries agreed to:
- Restore High Commissioners in Delhi and Ottawa.
- Restart talks on trade (EPTA/CEPA), visas, and people-to-people dialogue.
- Decision made during PM Modi’s meeting with new Canadian PM Mark Carney on the sidelines of the G-7 Outreach in Kananaskis, Canada.
Relevance : GS 2(International Relations)
From Crisis to Calibration
- Diplomatic ties ruptured over Canada’s accusation of Indian involvement in the 2023 killing of Hardeep Singh Nijjar (a Khalistani separatist).
- India:
- Denied all allegations.
- Suspended visa services for Canadians.
- Expelled several Canadian diplomats for “interference in internal matters.”
- Carney’s election in April 2025 replaces Justin Trudeau, creating space for diplomatic thaw.
Steps Agreed Upon
- Appointment of High Commissioners to be completed by July 2025.
- India has nominated Dinesh Patnaik (currently Ambassador to Spain).
- Revive Early Progress Trade Agreement (EPTA) negotiations aiming for CEPA.
- Resumption of high-level dialogues in:
- Clean energy, AI, digital transformation
- Critical minerals, LNG, food security
- Higher education, mobility, supply chains
Sensitive Themes Still Linger
- Nijjar case not explicitly mentioned in official readouts, but indirectly referred under:
- G-7 Joint Statement on Transnational Repression – condemns violence against dissidents, journalists, diaspora members.
- PM Carney’s remarks on “security” and “rules-based order.”
- A Canadian intelligence report, expected soon, reaffirms suspicion of India’s involvement in Nijjar’s killing – may continue to strain trust.
Earlier Flashpoints
- Canada expelled Indian HC Sanjay Verma; India expelled 6 Canadian diplomats in return (Oct 2024).
- Allegations included involvement of Indian Home Minister Amit Shah, as per RCMP probe.
- India accused Canada of harbouring Khalistani extremism and failing to protect its diplomats.
Trudeau to Carney: Diplomatic Opening
- Transition from Trudeau to Carney offered Delhi a political off-ramp to de-escalate.
- Carney, though from the same party, has taken a more nuanced approach.
Key Takeaways
- The Modi–Carney meeting marks a measured reconciliation, prioritising trade and people-to-people ties.
- Structural irritants like Khalistani extremism, diaspora politics, and transnational repression remain unresolved.
- A true reset will depend on:
- Canada’s ability to manage extremist elements.
- India’s willingness to engage despite deep-seated mistrust.
- Avoiding further escalatory leaks and allegations.
