India and Canada have taken significant steps to restore their strained bilateral relations through high-level talks between External Affairs Minister S Jaishankar and Canadian Foreign Minister Anita Anand in New Delhi. The discussions resulted in a joint statement outlining measures to enhance cooperation in trade, energy, AI, and critical minerals, signaling a reset after tensions over the 2023 killing of Khalistani separatist Hardeep Singh Nijjar and subsequent diplomatic expulsions. This move comes amid global economic uncertainty and aims to rebuild trust for mutual benefit.
What Are the Recent Steps Taken by India and Canada to Restore Bilateral Ties?
High-Level Diplomatic Engagements: The meeting between EAM S Jaishankar and Canadian FM Anita Anand on October 13, 2025, resulted in a joint statement outlining a roadmap for cooperation; this follows PM Modi's interaction with PM Trudeau at the G7 Summit in June 2025, where they agreed to reinstate high commissioners and normalize relations.
Focus Areas for Collaboration: Agreements include relaunching trade talks, energy dialogue, and AI partnerships, aiming to address global challenges like economic uncertainty and supply chain disruptions.
Significance of the Reset: This thaw comes after a low point in 2023 when Canada accused Indian agents of involvement in Nijjar's killing, leading to expulsions; the steps reflect mutual interest in economic benefits amid US tariffs and China's dominance in critical sectors.
What is the Background of India-Canada Bilateral Relations?
Historical Ties: India and Canada share a relationship dating back to 1947, strengthened by a large Indian diaspora (over 1.8 million people of Indian origin in Canada) and shared Commonwealth membership; early cooperation focused on nuclear energy, with Canada aiding India's CIRUS reactor in the 1950s.
Economic and Trade Relations: Bilateral trade stands at $23.66 billion (2024), with Canada exporting potash and pulses to India, while India exports pharmaceuticals and textiles; the stalled CEPA talks (paused in 2023) aim to boost this to $30 billion by 2030.
Recent Tensions and Diplomatic Strain: Relations soured in 2023 over Canada's allegations of Indian involvement in the killing of Khalistani activist Hardeep Singh Nijjar, leading to reciprocal diplomat expulsions and trade talk suspensions; underlying issues include Canada's perceived support for Khalistani elements.
What Are the Key Areas of Cooperation Highlighted in the Joint Statement?
Trade and Investment: Ministerial discussions will resume to explore a comprehensive trade agreement, focusing on diversifying supply chains in critical minerals like lithium and cobalt, where Canada has reserves and India has demand for EV batteries.
Energy and Clean Technologies: Relaunching CIMED will promote investments in renewable energy, aligning with India's net-zero by 2070 goal and Canada's expertise in hydropower and green hydrogen.
AI and Technology: Canada will participate in India's AI Summit 2026, fostering collaboration in ethical AI, digital infrastructure, and cybersecurity, amid global AI governance discussions.
Food Security and Agriculture: Emphasis on farm cooperation, including sustainable practices and trade in agri-products, to address global food inflation.
What Are the Challenges and Opportunities in India-Canada Relations?
Challenges from Past Tensions: Lingering distrust over Khalistan issues and human rights concerns in Canada could hinder progress; economic dependencies on third parties like the US add complexity amid potential tariffs.
Opportunities for Mutual Growth: Canada's resources in critical minerals complement India's manufacturing strengths; joint ventures in AI and energy can de-risk global supply chains, creating jobs and boosting trade.
Broader Geopolitical Context: The reset aligns with India's multi-alignment policy and Canada's Indo-Pacific strategy, countering China's influence in Asia and Africa through diversified partnerships.
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