- During the Canadian Foreign Minister Anita Anand’s visit to India, the two sides agreed to resume the Canada-India Ministerial Energy Dialogue (CIMED), focusing on renewable energy and critical minerals.
- Canada’s recent outreach is an attempt to rebuild ties with India, as it has realised that its earlier anti-India approach yielded no international or domestic political advantage.
- There has been a sharp decline in the number of Indian students choosing to study in Canadian universities, due to the visa restrictions introduced in 2023, resulting in significant financial losses for Canadian educational institutions.
- However, Canada’s continued tolerance toward Khalistani separatist elements operating from its soil under the banner of freedom of speech remains a major challenge in the bilateral relationship.
With two years of diplomatic fallout followed by the resumption of a new chapter between India and Canada, the recent visit of Canadian Foreign Minister Anita Anand to India marked a significant development. This was the first high-level visit since 2023, when relations between the two countries plummeted after baseless allegations made by then Prime Minister Justin Trudeau, who accused India of involvement in the assassination of Indian-Canadian Khalistani separatist Hardeep Singh Nijjar in Canada. Since then, bilateral relations have hit an all-time low, with trade talks suspended, visas restricted, diplomats expelled, and a continuous exchange of harsh words between the two governments. What worsened the situation further was that all these allegations from Canada came without proper evidence, appearing more like an attempt to target India on the global stage.
However, a ray of hope emerged in Canada following the rise of the new Liberal Prime Minister, Mark Carney, whose party won decisively earlier this year against the Conservatives. From the first day in office, Carney made it clear that he intended to resolve the ongoing crisis between India and Canada. He was pragmatic enough to understand that losing India would be a major diplomatic and economic loss for Canada. It was in Canada’s interest to maintain and strengthen ties with India. Despite facing backlash from within his own Liberal Party, which had earlier played a key role in orchestrating anti-India campaigns, Prime Minister Carney extended an invitation to Prime Minister Narendra Modi to attend the G7 Summit held in Canada earlier this year.
The G7 Summit turned out to be a watershed moment and acted as a catalyst in improving India-Canada relations. During the bilateral meeting, Prime Minister Modi made it clear that India wished to move forward with a positive mindset. This set a good precedent for future bilateral engagement, and the Canadian government reciprocated by sending Foreign Minister Anita Anand on a three-day visit to India. Both sides are now eager to establish a new roadmap for cooperation in trade, energy, technology, and education, signalling a thaw in relations.
During her visit, Foreign Minister Anand met Prime Minister Modi, External Affairs Minister S. Jaishankar, and Commerce Minister Piyush Goyal. The two sides agreed to resume the Canada-India Ministerial Energy Dialogue (CIMED), focusing on renewable energy and critical minerals. They also agreed to relaunch the Joint Science and Technology Cooperation Committee. The Indian side invited Canada to participate in the Global AI Summit scheduled to be held in India in February 2026. Both countries reinstated their respective High Commissioners on August 28, following a meeting between NSA Ajit Doval and his Canadian counterpart.
Foreign Minister Anand stated that Canada possesses strong economic potential with several commonalities with India. She added that Canada is eager to rebuild and reset relations with India. External Affairs Minister Jaishankar, on his part, emphasised that both India and Canada are important members of the G20 and the Commonwealth, and it is essential for both to work together not only for the improvement of bilateral relations but also for global geopolitical stability.
Reasons for Canada’s Outreach
Canada’s recent outreach is an attempt to rebuild ties with India. Canada has realised that its earlier anti-India approach yielded no international or domestic political advantage. The baseless allegations against India failed to gain traction globally and eventually harmed Canada’s own economic and diplomatic standing.
There has also been a sharp decline in the number of Indian students choosing to study in Canadian universities, which had been among their preferred destinations. The visa restrictions introduced in 2023 made it difficult for Indian students to secure admissions, resulting in significant financial losses for Canadian educational institutions. Additionally, Canada’s economy has been struggling with rising unemployment and stagnation, which further worsened under the new tariff regime introduced by U.S. President Trump.
In such a situation, Canada clearly needs a strong economic partner, and India fits that role perfectly. India offers a large market for Canadian goods while also serving as an attractive destination for Canadian investments. At the same time, Indian enterprises have established a growing presence in Canada, making the partnership mutually beneficial.
This resumption of dialogue is, therefore, an acknowledgement by Canada of its earlier mistakes in 2023. For India as well, renewed engagement with Canada is economically valuable. With the U.S. imposing a 50 % tariff regime on Indian goods, India needs to diversify its markets, and Canada could serve as an important alternative.
Canada also has much to gain from India’s services sector. Following President Trump’s new H1B visa policy, which requires a $100,000 fee for new applicants, Prime Minister Carney announced that Canada would welcome skilled professionals affected by the U.S. policy. This creates an additional area of cooperation between India and Canada.
This positive momentum between India and Canada is also giving hope for the resumption of the free trade agreement negotiations, which were sidelined after the 2023 diplomatic fallout. Strong relations between the two countries can help them reach a better understanding. Given the global uncertainties, a free trade agreement would be the right answer not only to resolve ongoing bilateral issues but also to address global challenges, while making the economies of both countries more resilient.
Canada’s aspirations in the Indo-Pacific region also align with India’s interests, as India is a major power and an influential leader in the region. Therefore, stronger India-Canada relations would benefit both sides strategically and economically.
However, one major challenge remains: Canada’s continued tolerance toward Khalistani separatist elements operating from its soil. These groups openly issue threats against India and undermine its sovereignty. While the Canadian government has often defended such actions under the banner of freedom of speech, India has made it clear that such freedoms do not extend to those actively promoting terrorism. Prime Minister Carney must ensure that his government does not repeat the mistakes of 2023. If Canada sincerely addresses India’s concerns regarding the Khalistan issue and takes firm action against extremist elements, relations between the two nations can reach new heights of cooperation and mutual growth.
Aayush Pal is a freelance writer on contemporary geopolitical developments. The views expressed in his work are entirely his own.
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