Mark Carney's Visit to India: A Shift in Canada-India Relations
Significance of Mark Carney's India Visit
During Canadian Prime Minister Mark Carney's recent trip to India, a notable absence was his visit to Punjab, which deviates from the tradition of previous prime ministers who often engaged with the large Indian community from that state. Carney's focus appears to be on strengthening economic ties and mending the strained bilateral relations that deteriorated following the assassination of Khalistani terrorist Hardeep Singh Nijjar during Justin Trudeau's administration.
Efforts to Mend Diplomatic Relations
Since taking office last year, Carney has made several moves to bury the ghosts of the troubled Canada-India relations that emerged during Trudeau's tenure. This marks Carney's third meeting with Prime Minister Narendra Modi in just ten months, a significant turnaround for a relationship that was marked by diplomatic expulsions and sharp criticisms just a year ago.
Canada's Stance on Violent Crimes
A recent development occurred on Wednesday as Carney was set to depart for Mumbai. The Canadian government clarified that India is no longer associated with violent crimes occurring on its soil, a shift that has angered Sikh activists in Ottawa. According to a senior government official, 'If we believed that India was actively interfering in Canada's democratic process, we might not have undertaken this trip.'
Historical Context of Canada-India Relations
This change in Canada's stance is significant. In October 2024, the Trudeau government had accused India of being linked to violent criminal activities associated with the Lawrence Bishnoi gang. Despite India's denial of these claims, tensions escalated when Canada declared India's High Commissioner and other diplomats persona non grata, prompting a reciprocal response from New Delhi.
The Diplomatic Standoff
A week prior, Carney's government quietly revoked the citizenship of Tahawwur Rana, an accused in the 26/11 Mumbai attacks. Rana, a terrorist linked to Lashkar-e-Taiba, is currently facing trial in India after being extradited from the US last year. Although Canada has not explicitly stated the reasons behind its changed stance, officials have emphasized 'systematic engagement' with India, including at the ministerial level.
The Downfall of Relations
The deterioration of relations began in September 2023 when Trudeau accused the Modi government of involvement in Nijjar's murder shortly after returning from India. India swiftly dismissed these allegations as 'motivated,' leading to a significant diplomatic standoff where both nations expelled each other's diplomats. India demanded parity, resulting in Canada recalling 41 diplomats and their families from its mission.
The Khalistani Issue
At the heart of this diplomatic dispute lies the long-standing Khalistani issue, which advocates for a separate state for Punjab. For decades, political sentiments surrounding Khalistan have influenced electoral strategies in Canada. Carney, who took office in March 2025, seems determined to move away from this contentious path.
Mark Carney's Approach to Strengthening Ties
Relations began to improve when Carney personally invited PM Modi to the G7 summit in June last year, where they held a separate meeting on the sidelines. This led to a significant breakthrough, with both countries agreeing to resume discussions on a Comprehensive Economic Partnership Agreement (CEPA) and reinstating High Commissioners.
The Impact of Trump's Policies
Carney's efforts to mend ties have not been one-sided. The disruptions in trade caused by former US President Donald Trump have compelled both India and Canada to reassess their strategies and global partnerships. Carney has gradually sought to reduce Canada's heavy reliance on the US, which accounts for 75% of its exports and absorbs 98% of its energy exports.
Carney's Historic Visit to China
Earlier this year, Carney made a historic visit to China, the first by a Canadian PM in eight years. Despite Trump's displeasure, Carney removed tariffs on Chinese electric vehicles, distancing Canada from US trade policies, which angered Trump, who threatened to impose 100% tariffs on Canadian exports.
A Practical Reset
The uncertainty stemming from Trump's tariffs and trade policies has inadvertently helped both India and Canada find common ground. Recognizing the need to diversify trade partners, India has already made agreements with the UK, New Zealand, Oman, and the European Union. While a trade deal framework with the US has been announced, it faces new challenges following the Supreme Court's annulment of Trump's tariffs.
Looking Ahead
Now, Carney arrives in India with a portfolio of deals, including uranium supply, LNG, and essential minerals. This practical reset focuses on strengthening economic interests while addressing the Khalistani issue and the fallout from Nijjar's assassination.