Mark Carney’s ascension to the role of Canada’s Prime Minister has brought renewed optimism for a diplomatic thaw between New Delhi and Ottawa, a relationship that faced serious setbacks under former Prime Minister Justin Trudeau. Carney, a former central banker and political novice, made it clear during his campaign that rebuilding bilateral ties with India would be among his foreign policy priorities.
Carney signals intent to revive ties
In his pre-election statements, Carney emphasised Canada’s need to diversify trade partnerships with nations that share democratic values—explicitly naming India. He said, “There are opportunities to rebuild the relationship with India. If I am Prime Minister, I look forward to the opportunity to build that.”
This approach marks a significant departure from the Trudeau administration’s strained relations with India, especially following the high-profile controversy in 2023 involving the killing of Khalistani separatist Hardeep Singh Nijjar. The diplomatic crisis escalated with the expulsion of six Indian diplomats and reciprocal steps from India, effectively freezing high-level exchanges and trade talks.
The road to reconciliation
Under Trudeau, India frequently accused Canada of harbouring extremist elements within its Sikh diaspora. The Indian government viewed this as a threat to its sovereignty, particularly amid rising incidents of pro-Khalistan demonstrations abroad.
Mark Carney, however, has taken a more pragmatic view, underlining the importance of restoring diplomatic balance and mutual respect. His vision of Canadian sovereignty also extends to redefining international alliances, with a push toward reducing dependency on its largest neighbour—the United States—and strengthening partnerships like the one with India.
Economic and educational prospects
The Comprehensive Economic Partnership Agreement (CEPA) between the two nations, stalled due to the diplomatic fallout, may see a revival under Carney’s leadership. In 2023, services trade between India and Canada was valued at CAD 13.49 billion. Both countries had been exploring collaboration in emerging sectors like AI, green energy, and education.
India continues to be one of the largest contributors to Canada’s immigrant population, with nearly 2.8 million people of Indian origin living in the country. Carney is likely to continue the liberal immigration policies, particularly benefiting Indian students and professionals. Over 427,000 Indian students currently study in Canada, playing a crucial role in its economy and labour force.
A cautious but hopeful turn
Carney’s victory offers both countries a diplomatic opportunity to reset a troubled chapter. With mutual interests in economic growth, technological advancement, and geopolitical balance, the groundwork is being laid for a more collaborative future.