Tensions between India and Canada reached a historic low after Canadian Prime Minister Justin Trudeau’s September 2023 allegations implicating Indian nationals in the murder of Khalistani terrorist Hardeep Singh Nijjar on June 18, 2023. In the wake of these accusations, both countries expelled their top diplomats, further souring bilateral relations. Now, Mark Carney, who has recently emerged as the new leader of Canada’s ruling Liberal Party, is signaling a potential diplomatic shift aimed at repairing the strained ties with India. Carney, a former central banker, has expressed his commitment to “rebuilding” Canada’s relationship with New Delhi and diversifying Ottawa’s trade relations with the country.
Carney, who secured 85.9% of the votes in the Liberal Party leadership race, is poised to replace Justin Trudeau as Canada’s next prime minister. In a recent media interaction in Calgary, Alberta, Carney emphasized the importance of diversifying Canada’s trade partnerships, especially in light of U.S. tariff threats. He identified India as a key partner in this strategy, noting that a “shared sense of values” would be central to developing stronger commercial ties.
Carney’s knowledge of Canada’s economic relations with India could prove advantageous in rebuilding ties. Having previously led both the Bank of Canada and the Bank of England and served as the chair of Brookfield Asset Management, which has significant investments in India’s real estate, renewable energy, and infrastructure sectors, Carney is well-positioned to understand the complexities of the economic relationship between the two countries. Given the difficulties both countries are facing as a result of U.S. President Donald Trump’s tariff threats, India is likely to welcome any efforts by Canada to strengthen bilateral ties. Additionally, Canada remains a popular destination for Indian immigrants, which may lead New Delhi to raise concerns regarding Canada’s recent restrictions on immigration and tighter visa policies under the new leadership.
Khalistani extremists attempted to assault External Affairs Minister S. Jaishankar in London after attending an event at the Chatham House think tank. Pro-Khalistan supporters staged a protest outside the venue, with a man tearing the Indian national flag in front of London police officers. A video circulating online shows the incident.
The relationship between India and Canada deteriorated sharply following Trudeau’s September 2023 statements, which accused individuals in India of being involved in Nijjar’s death. India rejected these allegations as “baseless,” and in retaliation, both nations expelled their senior diplomats. Further complicating matters, Canada put a pause on the Early Progress Trade Agreement, which was expected to be finalised in 2023. As Carney takes the helm of Canada’s government, the prospect of rebuilding the relationship with India remains a key priority, and his diplomatic approach could signal a significant shift in Canada’s foreign policy.