India and Canada Reset Ties

Syllabus: GS2/IR

Context

• Indian and Canadian National Security Advisors (NSAs) and security teams held talks on enhancing bilateral cooperation.

About

• The high-level dialogue comes nearly two years after diplomatic relations between the two nations were strained by Canadian allegations over the killing of Khalistani separatist.
  • It is also the first major engagement between the two countries’ security establishments since both sides appointed new High Commissioners.
• The talks focused on sharing information and counter-terror cooperation, as well as India’s requests for the extradition of a number of Khalistani activists wanted for cases in India.

Brief on India-Canada Relations

• Historical Relations: India and Canada established diplomatic relations in 1947.
  • Shared democratic values and Commonwealth membership have underpinned ties.
  • Relations were historically strained after India’s nuclear tests in 1974 and 1998, due to Canada’s non-proliferation stance.
• Economic Cooperation: In 2024, total bilateral trade in goods amounted to USD 8.55 billion (India’s exports: USD 5.22 billion and India’s imports: USD 3.33 billion).
  • Negotiations continue on a Comprehensive Economic Partnership Agreement (CEPA) and a Foreign Investment Promotion and Protection Agreement (FIPA).
• Civil Nuclear Cooperation: Nuclear Cooperation Agreement (NCA) was signed in 2010, operational since 2013.
  • A Joint Committee oversees implementation of the 2010 Agreement on “Cooperation in Peaceful Uses of Nuclear Energy”.
• Space Cooperation: MoUs were signed in 1996 and 2003 between ISRO and Canadian Space Agency (CSA).
  • Cooperation includes satellite tracking, space astronomy, and commercial satellite launches.
  • ISRO’s commercial arm ANTRIX has launched multiple Canadian nanosatellites.
• Science and Technology: Department of Earth Science and Polar Canada have started a programme for exchange of knowledge and scientific research on Cold Climate (Arctic) Studies.
  • A Memorandum of Cooperation between National Centre for Polar and Ocean Research (NCPOR) and POLAR Canada was signed in 2020. 
• People-to-People Links: There are around 1.8 million Indo-Canadians and one million non-resident Indians in Canada, making up over 3% of its population.
  • India is the largest source of international students in Canada, with Indians making up around 40% of that group.
  • Strong cultural exchanges and vibrant diaspora influence bilateral perceptions.
• Multilateral Cooperation: Both countries cooperate in forums like the G20, Commonwealth, United Nations, and International Solar Alliance.

Areas of Differences

• Khalistani Extremism: India has repeatedly raised concerns over pro-Khalistan activities, including hate speech, violence, and attacks on Indian diplomatic missions.
• Political Differences: Canadian leaders have sometimes made statements sympathetic to separatist groups. This has created recurring diplomatic friction.
• Trade and Investment Uncertainty: Ongoing talks on the Early Progress Trade Agreement (EPTA) were paused in 2023 amid political tensions.
  • Despite strong business interest, political issues slow down economic engagement.
• Differing Geopolitical Outlooks: India seeks stronger Indo-Pacific cooperation, but Canada’s approach is often seen as inconsistent and influenced by domestic politics.

Conclusion

• India–Canada relations have strong foundations and significant potential, especially in trade, education, and clean energy. However, bilateral ties remain fragile, with political and security concerns acting as key irritants. 
• The future of the relationship depends on how both countries manage these differences while leveraging shared interests.

Source: TH