Context

After a two-year diplomatic standoff, India and Canada have agreed to restore full diplomatic ties by reinstating their High Commissioners. This marks a cautious step forward, with renewed discussions on trade negotiations, visa services, and sectoral cooperation.

Recent Developments

• Prime Minister Narendra Modi and Canada’s newly elected Prime Minister Mark Carney met on the sidelines of the G7 Outreach Summit, signaling a thaw in relations.
• Both leaders agreed to resume negotiations on the Early Progress Trade Agreement (EPTA) and work towards a broader Comprehensive Economic Partnership Agreement (CEPA).
• Priority areas for collaboration include:
  • Clean energy and LNG
  • Digital transformation and AI
  • Critical minerals and food security
  • Higher education and student mobility
  • Supply chain resilience

Background to the Diplomatic Standoff

• Tensions escalated over Khalistani separatist activities in Canada, with India expressing repeated concerns over perceived Canadian inaction.
• A serious diplomatic crisis erupted in 2023 when Canada alleged Indian involvement in the killing of a Canadian citizen with links to Khalistan extremism.
  • India strongly rejected the allegations and retaliated by expelling Canadian diplomats.
  • Talks on trade and economic cooperation were suspended as ties hit a low point.

India–Canada Relations: An Overview

1. Historical Relations

• Diplomatic ties established in 1947.
• Common ground: shared democratic traditions and Commonwealth membership.
• Relations have previously been strained, notably after India’s nuclear tests in 1974 and 1998, which Canada opposed on non-proliferation grounds.

2. Economic Engagement

• Bilateral Trade (Jan–Aug 2024):
  • Total: USD 8.55 billion
  • India’s exports: USD 5.22 billion
  • Imports from Canada: USD 3.33 billion
• Ongoing negotiations on:
  • CEPA (Comprehensive Economic Partnership Agreement)
  • FIPA (Foreign Investment Promotion and Protection Agreement)

3. Civil Nuclear Cooperation

• Nuclear Cooperation Agreement (NCA) signed in 2010, operational since 2013.
• A Joint Committee oversees cooperation on peaceful uses of nuclear energy.

4. Space Cooperation

• MoUs signed between ISRO and the Canadian Space Agency (CSA) in 1996 and 2003.
• Collaboration includes satellite tracking, space astronomy, and commercial launches.
• ISRO’s commercial arm ANTRIX has launched several Canadian nanosatellites.

5. Science & Arctic Research

• Joint Arctic research under the Cold Climate Studies programme, initiated by the Department of Earth Science and POLAR Canada.
• A 2020 MoU between NCPOR and POLAR Canada facilitates cooperation in polar science.

6. People-to-People Ties

• Around 1.8 million Indo-Canadians and 1 million NRIs live in Canada — making up over 3% of its population.
• India is the largest source of international students in Canada, comprising around 40% of the total.
• A vibrant diaspora contributes to strong cultural and community connections.

7. Multilateral Cooperation

• Both nations work together in international platforms such as the:
  • G20
  • Commonwealth
  • United Nations
  • International Solar Alliance

Conclusion

India and Canada share a historically deep and multifaceted relationship, rooted in democratic values and strengthened by economic, cultural, and scientific ties. However, the relationship remains delicate, with political and security concerns, especially over extremism and diaspora politics, posing significant challenges.

The recent high-level engagement reflects mutual interest in reviving cooperation, particularly in areas like trade, education, and clean energy. Moving forward, the success of India–Canada relations will depend on managing core differences while building on shared interests.