India–Canada Relations: A Likely Reset with Mark Carney

The result of Canada's 2025 federal election, in which Mark Carney's Liberal Party established a government, may represent a turning point in India–Canada relations after two decades of acrimony. The new leader's tone is one of overtures for mutual respect and shared interests, providing the first chance at reconciliation since diplomatic ties hit rock bottom under previous Prime Minister Justin Trudeau.

India–Canada relations were seriously blemished during Trudeau, especially on Khalistan extremism and Hardeep Singh Najjar's assassination, a secessionist leader. Trudeau's Indian conspiracy theory of the 2024 assassination resulted in a bitter diplomatic rift. However, tensions flared when India rejected allegations as "absurd" and both countries expelled diplomats in a reciprocal move. India.  Bilateral talks went on ice, and collaboration in trade, education, and immigration suffered.

Carney's election has been greeted with guarded optimism in New Delhi. Indian Prime Minister Narendra Modi greeted him on social media, citing shared democratic values and people-to-people ties. Indian officials hope to find in Carney a leader who will value stability and deference to international norms. India has said that it is willing to restore the relationship subject to action from Canada on issues about key concerns such as the security of Indian diplomats and interference in domestic affairs.

Carney's experience as a former central banker implies a practical approach to international economic alliances. This shared interest could help restart talks on the long-stalled Comprehensive Economic Partnership Agreement (CEPA). The two nations have much to benefit from closer economic ties—Canada by having greater access to the Indian market, and India by weaning itself off its over-reliance on the United States.

India's increasing economic clout and Canada's imperative to diversify trade in light of rising tensions with the U.S. make deeper commercial ties an attractive proposition for both. Carney might put economic diplomacy at the front as a tool to build goodwill and establish meaningful advantage to both economies.

Carney's reforms to immigration will be closely observed by Canada's huge Indian diaspora of around 1.8 million. Student exchange and immigration cooperation had reached a standstill during the previous government, partly because of geopolitical tensions and bureaucratic glitches. Although Conservative Party leader Pierre Poilievre had promised reforms to simplify immigration, Carney's part remains unclear.A more inclusive immigration policy by Carney would act as a bridge between the two countries, boosting cultural relations and public sentiment among Indian Canadians.

India and Canada share a mutual commitment to democratic governance and a rules-based order in the Indo-Pacific region. With rising tensions between the U.S. and Canada, India can become an increasingly important strategic partner for Ottawa. Maritime security, counterterrorism, and climate change provide possible areas of future cooperation. If Carney adopts a balanced and respectful foreign policy, India could respond with increased diplomatic and strategic interaction. Much, however, will depend on the manner in which Canada responds to India's enduring concerns regarding extremism and domestic interference.

Conclusion

The entry of Mark Carney as Prime Minister of Canada provides an opening to reboot the relationship between India and Canada. With decades of lack of trust uncorrected within a night's sleep, optimists are exercising caution on either side. Whether this is utilized to create an enduring turning point or lost within the next quarter will depend upon diplomacy, foreign trade, migration, and the policy of neighbourliness. what do you say?

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