India–Canada relations, strained after the assassination of Hardeep Singh Nijjar and a year-long diplomatic freeze, are witnessing a reset with Canadian Foreign Minister Anita Anand’s visit, signaling efforts to restore trust and revive cooperation.

Causes for the Thaw in Relations

• Shift in Political Leadership: The change in Canada’s leadership—from the previous administration to the new Prime Minister—has reshaped its foreign policy orientation. 
  • A key meeting between India’s Prime Minister and Canada’s Prime Minister at the G7 Summit in June, described as “off map,” signaled efforts to realign bilateral relations and correct past missteps.
• Need to Diversify Beyond the United States: Canada’s economic and strategic dependence on the United States was exposed during the previous U.S. administration, marked by tariffs and trade uncertainties. 
  • Recognizing the risks of overreliance, Canada is now diversifying its partnerships and identifying India as a vital trade and strategic ally.

Core Issues Hindering Progress

• Security and Credibility Concerns: Although economic ties remain strong, supported by a vibrant Indian diaspora and Canadian investments in India’s infrastructure and startups, trust has weakened due to India’s concerns over Canada’s tolerance of Khalistani elements operating from its soil.
• Vote Bank and Funding Pressures: Canadian political parties, particularly under Trudeau’s leadership, feared alienating sections of the Sikh vote bank and losing electoral funding if they acted against Khalistani groups, leading to political hesitation in addressing India’s security concerns.
• Divergent Interpretations: Canada defends its stance by invoking freedom of speech and expression, arguing that non-violent advocacy should not be restricted. 
  • India counters that incitement, hate campaigns, and the planning of violence cannot be justified as free expression.
• Targeted Action Against Extremist Elements:  The arrest of three individuals, including Inderjit Singh Ghosal—a key organizer of the banned group “Sikhs for Justice”—by Canadian police marks a positive step.

Way Forward

• Strategic Realignment and Cooperation: As the global focus shifts to the Indo-Pacific, Canada must engage more actively, with stronger ties to India vital for its strategic and economic interests.
• Building Institutional Trust: To prevent future diplomatic escalations, both countries should establish a structured crisis management framework, such as a hotline between their National Security Advisors (NSAs), to ensure sensitive issues are addressed privately and constructively.
• Reviving Economic and Educational Linkages: Fast-track the Early Progress Trade Agreement (EPTA) and promote student mobility and research partnerships to strengthen people-to-people and economic connectivity.
• Countering Extremism through Joint Mechanisms: Launch a bilateral counter-extremism task force to monitor hate propaganda, strengthen cyber cooperation, and ensure that free speech is not misused for violent separatism.

Conclusion

India and Canada stand at a critical juncture — rebuilding trust through strategic alignment and mutual sensitivity is key to transforming shared interests into a stable, forward-looking partnership.

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