Mark Carney's triumph in the Canadian federal elections, which brought the Liberal Party to power, could signal a turning point in one of Canada's most stressed international relations—its relationship with India. A political newcomer, Carney just said, "I'm most useful in a crisis," indicating his willingness to handle diplomatic issues.
Among his campaign goals, he underlined the need of mending the severely frayed ties with New Delhi, which had under former Prime Minister Justin Trudeau much declined.
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"What Canada will be looking to do is to diversify our trading relationships with like-minded countries, and there are opportunities to rebuild the relationship with India. There needs to be a shared sense of values around that commercial relationship, and if I am Prime Minister, I look forward to the opportunity to build that," said Carney.
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Relations between India and Canada deteriorated in 2023 when the Trudeau administration charged "Indian agents" with participation in the June 2023 murder of Hardeep Singh Nijjar, a Canadian citizen and Khalistani separatist, outside a gurdwara in Surrey, British Columbia. When Canada expelled six Indian diplomats, tensions grew even more in 2024. India vehemently denied any involvement in Nijjar's death and called the claims baseless. Senior envoys were expelled, trade talks were stopped, and official visits between the two nations were suspended as result of the diplomatic consequences.
Ottawa has long come under fire from New Delhi for allegedly fostering the growth of extremist elements within Canada's Sikh diaspora. The Trudeau administration was seen by Indian officials as being too willing to publicly criticise India and too lenient with regard to separatist rhetoric. In light of this, both capitals are keeping a careful eye on Mark Carney's election victory for indications of a possible change in bilateral relations.
In the midst of tensions with the United States, 60-year-old Mark Carney, the former head of the Bank of Canada and Bank of England, has promised to reshape Canada's foreign policy by placing an emphasis on national sovereignty and trade diversification. He has called for a new approach to diplomacy and named India as a key partner. In February, he told the Toronto Star, "Different person, different policies, different approach to governing." Congratulating Carney on his victory, Prime Minister Narendra Modi said he hoped for improved bilateral relations and more opportunities for both countries.
Prime Minister Narendra Modi also congratulated him and said, "Congratulations @MarkJCarney on your election as the Prime Minister of Canada and to the Liberal Party on their victory. India and Canada are bound by shared democratic values, a steadfast commitment to the rule of law, and vibrant people-to-people ties. I look forward to working with you to strengthen our partnership and unlock greater opportunities for our people." he said on X.
Preserving its territorial integrity and sovereignty has always been a top priority for the Indian government. Support for Khalistani elements overseas, such as rallies, internet propaganda, and purported fundraising, is seen as a major national security risk. Many in India believed that former Prime Minister Trudeau was hesitant to address these issues, particularly in light of recent events such as Sikh separatists damaging Hindu temples.
With almost 2.8 million individuals of Indian descent residing in Canada as permanent residents, students, or temporary workers, India continues to be the country's top immigration source. More than 427,000 Indian students make substantial contributions to Canada's workforce and educational system. Under Trudeau, diplomatic relations declined, but immigration from India remained robust. Mark Carney is anticipated to maintain this trend, especially in luring in tech talent, international students, and skilled professionals.
The long-delayed Comprehensive Economic Partnership Agreement (CEPA), which was shelved after the Nijjar controversy and reciprocal diplomatic expulsions, was one of the main victims of the diplomatic rift between Canada and India.
Recent remarks by Mark Carney suggest that he is open to reviving the trade agreement. Bilateral services trade reached CAD 13.49 billion in 2023, and both nations have expressed interest in expanding their cooperation in fields like higher education, fintech, AI, and green energy. Under Carney's direction, these industries might experience a resurgence, particularly as both countries look to diversify away from their dependence on the US and China.
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