How India and Canada mended their frayed ties

Source: The post “How India and Canada mended their frayed ties” has been created, based on “How India and Canada mended their frayed ties” published in “Indian Express” on  27th February 2026.

UPSC Syllabus: GS Paper-2-International Relations

Context: The visit of Canadian Prime Minister Mark Carney to India marks a significant attempt to reset India–Canada relations after a severe diplomatic crisis that began in 2023 following allegations made by Justin Trudeau regarding the killing of Hardeep Singh Nijjar. Both countries realised the importance of restoring ties due to strong economic, strategic, and diaspora linkages.

Background of the Diplomatic Crisis

1. The crisis began in September 2023 when Justin Trudeau alleged that Indian agents were involved in the killing of Hardeep Singh Nijjar in Canada.
2. Prime Minister Narendra Modi rejected these allegations and called them politically motivated.
3. Both countries expelled diplomats and withdrew High Commissioners, which led to a sharp deterioration in diplomatic relations.
4. Visa restrictions and closure of consulates affected students, businesses, and diaspora interactions.
5. The crisis also damaged mutual trust and created tensions in trade, security cooperation, and public perception.

Steps Taken to Mend Relations

1. After Mark Carney became Prime Minister in 2025, he showed willingness to rebuild relations with India.
2. Carney treated the Nijjar case as a law enforcement issue rather than a diplomatic dispute.
3. He invited Narendra Modi to the G7 outreach summit, which helped restart political dialogue.
4. Both countries agreed to restore High Commissioners and resume diplomatic engagement.
5. Visa restrictions were eased, and ministerial-level visits resumed.
6. India and Canada created an NSA-level mechanism to address concerns about transnational crimes and extremist activities.

Major Pillars of India–Canada Relations

I. Trade and Economic Relations

1. India and Canada agreed to negotiate a Comprehensive Economic Partnership Agreement to double trade to 70 billion dollars by 2030.
2. India exports pharmaceuticals, machinery, electronics, textiles, and seafood to Canada.
3. India imports pulses, fertilizers, and minerals from Canada.
4. Canada is among the important foreign investors in India.

II. Security and Defence Cooperation

1. India and Canada cooperate through the Joint Working Group on Counter-Terrorism established in 1997.
2. Both countries signed a framework on Countering Terrorism and Violent Extremism in 2018.
3. Recent meetings between national security advisors helped rebuild trust.

III. Energy Cooperation

1. Canada’s large reserves of oil, gas, LNG, and critical minerals match India’s growing energy needs.
2. Both countries aim to expand cooperation in conventional and renewable energy sectors.

IV. Education Links

1. Indian students form the largest group of international students in Canada.
2. Academic partnerships, joint research programmes, and mobility initiatives strengthen people-to-people ties.

V. Diaspora Relations

1. Canada hosts over 1.8 million Indo-Canadians, making the diaspora an important bridge between the two countries.
2. Only a small minority among them supports Khalistan, but their activities had strained relations earlier.
3. Both governments now aim to prevent extremist issues from affecting bilateral ties.

VI. Geopolitical Importance

1. Canada is part of the G7 and Five Eyes alliance and shares strategic partnerships with India’s key allies.
2. Cooperation in technology, supply chains, and innovation has increased.
3. Global trade uncertainties caused by policies of Donald Trump have made India–Canada cooperation more important.

Challenges Ahead

1. The Khalistan issue continues to be sensitive and needs careful handling.
2. Domestic political pressures in Canada may influence India policy.
3. Mutual trust in intelligence sharing must be strengthened.
4. Economic negotiations like the trade agreement may face delays.

Way Forward

1. Both countries should institutionalise high-level dialogue mechanisms.
2. They should fast-track the Comprehensive Economic Partnership Agreement.
3. They should strengthen cooperation against extremism and transnational crimes.
4. They should promote student exchanges and diaspora engagement.
5. They should collaborate in critical minerals, clean energy, and emerging technologies.

Conclusion: India and Canada have taken pragmatic steps to repair their strained relationship by restoring diplomatic channels, separating political disputes from cooperation, and focusing on shared economic and strategic interests. Sustained dialogue, respect for sovereignty, and deeper cooperation in trade, energy, and security will determine the long-term success of this partnership.

Question: Discuss how India and Canada have mended their frayed ties and analyse the future prospects of the relationship.

Source: Indian Express