India and Canada’s relations have historically been marked by a combination of economic cooperation, educational exchanges, and a shared commitment to democratic values. However, the ties between the two countries have faced significant turbulence in recent years, particularly following Canadian Prime Minister Justin Trudeau’s allegations of Indian involvement in the death of Hardeep Singh Nijjar, a Canadian Khalistani separatist. The strain was palpable when Indian Prime Minister Narendra Modi and Trudeau had a “brief exchange” on the sidelines of the ASEAN Summit in Vientiane, Laos, in 2024, almost a year after Trudeau’s explosive accusation. This encounter, while symbolically important, highlights the fragile state of diplomatic relations between the two nations.
The dispute between India and Canada erupted in September 2023, when Trudeau claimed there was a “potential” involvement of Indian agents in the killing of Nijjar, a known Khalistani separatist, outside a gurdwara in Surrey, Canada. Nijjar, who had been a vocal supporter of Khalistani separatism, was designated a terrorist by the Indian government in 2020. His assassination in Canada drew widespread attention and led Trudeau to make serious accusations against India, sparking an international diplomatic standoff. India strongly rejected these allegations, dismissing them as “absurd” and “motivated” by domestic political interests in Canada, particularly Trudeau’s need to cater to the sizable Sikh diaspora, which has some elements sympathetic to the Khalistani cause.
The issue of Khalistan has been a long-standing irritant in India-Canada relations. While the Khalistani separatist movement lost momentum in India after the 1980s, pockets of support continue to exist in countries like Canada, the UK, and Australia, where significant Sikh populations reside. In Canada, Sikhs form around 2.1% of the population, and many members of this community have political and social influence. However, the support for Khalistani separatism remains controversial, with the majority of the Sikh community in Canada not aligned with this ideology. Nevertheless, the presence of a vocal minority that champions the Khalistan cause has often placed Canada in a precarious diplomatic position with India.
India has repeatedly expressed its concerns over Canada’s perceived leniency towards Khalistani elements. Over the years, several incidents involving the glorification of Khalistani leaders and the hosting of separatist rallies in Canadian cities have irked India. For Canada, maintaining a delicate balance between respecting the free speech rights of its citizens and managing its diplomatic relationship with India has been a challenge. Trudeau’s government, in particular, has been accused of being overly cautious in handling the Khalistan issue, leading to accusations that his political stance is influenced by electoral considerations, given the importance of Sikh voters in Canadian politics.
This growing tension came to a head with the Nijjar case. Trudeau’s public allegation against India without providing substantial evidence only escalated the diplomatic row, with both countries expelling each other’s diplomats in retaliation. The diplomatic chill was further exacerbated by a subsequent freeze in trade talks and a general cooling of relations. The ASEAN Summit encounter between Modi and Trudeau, though brief, seemed to suggest that both sides are seeking a way forward, but the path to reconciliation is far from straightforward.
Trade relations between India and Canada have also been affected by this diplomatic strain. India is one of Canada’s largest trading partners in Asia, with bilateral trade amounting to approximately $10 billion CAD in 2022. Key exports from Canada to India include agricultural products like pulses, energy products, and machinery, while India exports textiles, pharmaceuticals, and auto parts to Canada. The two countries have also been negotiating a Comprehensive Economic Partnership Agreement (CEPA) for several years, but progress has been slow, partly due to political disagreements and, more recently, the fallout from the Nijjar controversy.
The educational relationship between India and Canada, however, remains strong despite the diplomatic freeze. Canada is one of the top destinations for Indian students seeking higher education abroad. As of 2023, more than 300,000 Indian students were enrolled in Canadian institutions, making India the largest source of international students for Canada. Indian students contribute significantly to Canada’s economy, particularly through tuition fees and living expenses. The strong presence of Indian students has created lasting academic and cultural ties between the two countries, though the current diplomatic tension may cause some students to reconsider their options.
The Indian diaspora in Canada is another key aspect of the bilateral relationship. There are around 1.8 million people of Indian origin living in Canada, making up about 5% of the total population. This community is well-integrated into Canadian society, with many members holding prominent positions in politics, business, and the arts. Indian immigrants have contributed significantly to Canada’s economic and cultural landscape, and their presence has historically been a bridge between the two nations. However, the Khalistan issue and the recent diplomatic fallout have complicated this relationship, as many in the Indian government feel that Canada is not doing enough to address concerns over extremism.
Moving forward, India and Canada will need to find ways to rebuild their damaged relationship. Diplomatic engagement, dialogue, and mutual respect for each other’s sovereignty will be crucial in mending ties. While the brief exchange between Modi and Trudeau at the ASEAN Summit may not signify a major breakthrough, it is a step in the right direction. Both countries have much to gain from cooperation, whether in trade, education, or addressing global challenges like climate change.
For Canada, addressing the Khalistan issue more assertively and ensuring that its domestic politics does not spill over into its foreign policy will be important in regaining India’s trust. On the other hand, India, while justified in its concerns over terrorism and extremism, will need to continue engaging diplomatically with Canada to ensure that both countries can move past this episode.
In conclusion, India-Canada relations have seen better days, but they are not beyond repair. While the meeting at the ASEAN Summit was brief and did not resolve the underlying issues, it signaled a willingness to engage, which is an essential first step. For the two nations, which share historical ties and common democratic values, it is in their mutual interest to find a way to overcome their differences and work towards a more positive future.
The views expressed in this article are the author’s own and do not necessarily reflect Coverpage’s editorial stance.
