India-Canada diplomatic relations hit a historic low in 2023 after then-Prime Minister Justin Trudeau alleged Indian involvement in the killing of Khalistani terrorist Hardeep Singh Nijjar. The claim, which India categorically rejected as “baseless,” led to the expulsion of top diplomats from both countries and a halt in trade negotiations. However, with Mark Carney set to succeed Trudeau as Canada’s Prime Minister, there is renewed hope for a diplomatic reset. Carney has expressed a strong desire to rebuild ties with India and diversify Canada’s trade relations.
Mark Carney’s Vision for India-Canada Relations
Mark Carney, the newly elected leader of Canada’s ruling Liberal Party, secured an overwhelming 85.9% of votes in the leadership race, positioning him as Trudeau’s successor. The 59-year-old former central banker, who has previously led the Bank of Canada and the Bank of England, aims to mend fractured relations with India.
Carney recently emphasized the need to diversify Canada’s trade relationships and signaled that improving ties with India would be a priority. Speaking in Calgary, Alberta, he stated, “There needs to be a shared sense of values around that commercial relationship, and if I am Prime Minister, I look forward to the opportunity to build that.”
Economic and Trade Prospects
Carney’s deep understanding of global finance and trade could serve as an advantage for India-Canada relations. His previous role as chairman of Brookfield Asset Management, a major investor in India’s real estate, renewable energy, and infrastructure sectors, provides him with firsthand knowledge of Ottawa’s economic ties with New Delhi.
India is likely to welcome any effort by Canada to improve relations, particularly given ongoing trade tensions with the United States. New Delhi may also push for relaxed immigration policies and visa norms, as Canada remains a top destination for Indian migrants.
The Fallout Under Trudeau’s Leadership
The strained relations between India and Canada originated from Trudeau’s allegations regarding Nijjar’s killing in June 2023. India strongly refuted these claims, dismissing them as politically motivated. The controversy led to both nations expelling each other’s top diplomats, further deepening the divide.
Additionally, Canada paused the Early Progress Trade Agreement, which was expected to conclude in 2023. This setback hindered economic cooperation at a time when both nations could have benefited from strengthened trade ties.
Future Expectations: A Path Forward
With Carney set to take charge, there is optimism for a diplomatic thaw between India and Canada. His leadership presents an opportunity for Ottawa to re-engage with New Delhi in a more constructive manner, moving beyond the Khalistan controversy.
For India, the key expectations from Carney’s government include resuming trade negotiations, fostering a mutually beneficial commercial partnership, and addressing immigration concerns. A more pragmatic and cooperative approach from Canada could not only restore bilateral relations but also unlock significant economic and strategic opportunities for both nations.
As Carney steps into leadership, the world will watch closely to see whether he can successfully steer Canada toward a new, positive chapter in its relationship with India.
(With inputs from agencies)
