India–Canada Diplomatic Reset

India and Canada have agreed to resume diplomatic engagement by restoring the presence of high commissioners in each other’s capitals following a bilateral meeting between the Indian Prime Minister and Canadian Prime Minister Mark Carney on the sidelines of the G7 Summit in Alberta. This marks a diplomatic thaw after the strained relations post the Hardeep Singh Nijjar episode in 2023.

India–Canada Relations

• Establishment of Ties (1947): Diplomatic relations established post-Independence; based on shared democratic and pluralistic values.
• Strains Over Time: Recurring issues such as the Kashmir plebiscite, Canada’s opposition to India’s nuclear tests (1974, 1998), and the Khalistan separatist movement.

• Khalistan Movement and Diaspora Politics
  • Canada houses the largest Sikh diaspora outside India (~800,000+).
  • Support from fringe elements in Canada has led to tensions—especially post-Nijjar incident (2023).
  • Historical incidents include 1985 Air India bombing, 2018 Atwal controversy, and 2023 G20 diplomatic cold shoulder.
• Nuclear and Defence Relations
  • Nuclear Cooperation Agreement (NCA), 2010: Facilitates Canadian uranium supply for India’s civilian nuclear program.
  • Canada withdrew cooperation post-1974 Pokhran nuclear test, resumed only after Indo–US Civil Nuclear Agreement.
• Trade and Investment
  • Bilateral Trade (2023): ~$5 billion (India’s exports: pharmaceuticals, textiles; Canada’s exports: lentils, wood pulp).
  • Canadian Pension Funds: Major investors in Indian infrastructure and tech (CPPIB, CDPQ invested over $75 billion).
  • Stalled CEPA: Comprehensive Economic Partnership Agreement negotiations have been stalled due to diplomatic tension.
• People-to-People & Education Ties
  • Indian Students in Canada: Over 427,000 Indian students as of 2023, India being the top source of international students.
  • Remittances: Canada is among top 10 sources; ~0.6% of India’s global remittance inflow.
  • Indian Diaspora: ~1.6 million strong (NRIs/PIOs), actively participating in Canadian politics and economy.

• Indo-Pacific Cooperation
  • Canada’s 2022 Indo-Pacific Strategy names India as a “critical partner” and balances China's influence.
  • Cooperation is sought in maritime security, cyber governance, and democratic rule-based order.
• Track-II and Civil Society Diplomacy
• Growing importance of think tanks, academic institutions, and diaspora organisations to bridge misunderstandings.
  • Crisis Points
  • Canada’s allegations regarding India’s role in Nijjar’s assassination created a diplomatic vacuum in 2023–24.
  • However, recent reset (2025 G7 sideline talks) led to the return of high commissioners and resumption of dialogues.

• Return of high commissioners agreed in June 2025 after PM-level meeting.
• Reactivation of bilateral working-level mechanisms and law enforcement cooperation.
• Focus areas for renewed cooperation: trade, mobility, counter-terrorism, and Indo-Pacific strategy alignment.

Way Forward

• Depoliticising Diaspora Issues: Stronger domestic engagement with diaspora and proactive engagement on separatist narratives.
• Early Conclusion of CEPA & FIPA: To insulate economic ties from political disturbances.
• Structured Strategic Dialogue: Revive regular strategic and security dialogues to align foreign policy interests.
• Balancing Soft Power Diplomacy: Expand collaboration in education, research, innovation, and civil society exchange.