GS 2: International RelationsGS 2: PolityGS 3: Economy

How India and Canada mended their frayed ties, Pg19

India and Canada mend strained ties after Nijjar allegations; PM Carney's visit signals renewed cooperation in trade, security, and geopolitics.

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Key Highlights:

  • Canadian Prime Minister Mark Carney is visiting India to improve bilateral relations after a period of strain.
  • Relations deteriorated in 2023 due to allegations by then PM Justin Trudeau regarding the killing of Hardeep Nijjar.
  • Carney succeeded Trudeau in March 2025 and prioritized resetting ties with India.
  • India and Canada aim to double two-way trade to $70 billion by 2030 through a Comprehensive Economic Partnership Agreement.
  • Over 3.92 lakh Indian students were studying in Canada as of December 31, 2024.

Detailed Insights:

  • The diplomatic crisis in 2023 led to the expulsion of diplomats and closure of consulates, impacting political, economic, and people-to-people ties.
  • Carney's approach involves treating the Nijjar killing as a law enforcement issue separate from political and economic relations.
  • A framework under the National Security Advisors has been created to discuss concerns related to pro-Khalistani activities in Canada.
  • India was Canada’s seventh-largest goods and services trading partner in 2024, with two-way trade at $30.8 billion.
  • Canada is the 17th largest foreign investor in India, with cumulative investments of $4.18 billion from April 2000 to June 2025.
  • India and Canada cooperate on global security issues through the Joint Working Group on Counter Terrorism.
  • Canada is home to a large Indian diaspora of over 1.8 million Indo-Canadians and approximately a million non-resident Indians.
  • Canada, India, and Australia have formed a trilateral technology and innovation partnership.

Key Concepts Involved:

  • Comprehensive Economic Partnership Agreement: A trade agreement to reduce barriers and increase economic cooperation between countries.
  • Diaspora: A group of people who live outside their ancestral homeland.
  • Bilateral Relationship: Diplomatic, economic, or cultural relations between two countries.
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