Mark Carney’s Win: A Turning Point in India-Canada Relations
Mark Carney’s Win Indicates an Implicit Reversal in India-Canada Relations Under Trudeau
Delhi, New Delhi The election of Mark Carney suggests that India-Canada ties may be poised for a reset. Rebuilding relations with India has been a top priority for Carney following recent political tensions. Bilateral ties were at an all-time low in 2023.
Carney’s Victory Signals Possible Reset in India-Canada Ties
One of Canada’s most strained international relationships — with India — may soon be restructured, following Mark Carney and the Liberal Party’s success in the country’s general elections.
Carney, a relatively new politician, recently stated, “I am most useful in a crisis.” His victory is being interpreted as a potential sign of recovery in bilateral ties, which had sharply deteriorated under former Prime Minister Justin Trudeau.
During his campaign, Carney prioritized rebuilding ties with India. “Diversifying economic ties with like-minded countries is Canada’s objective, and there is a genuine opportunity to repair our relationship with India. Shared values should form the basis of that economic relationship. If I’m elected prime minister, I look forward to strengthening that bond,” he had said.
Political Impacts: Fallout from the 2023 Incident
Relations between India and Canada hit a new low after the Trudeau administration accused “Indian agents” of being involved in the June 2023 killing of Hardeep Singh Nijjar — a Canadian citizen and designated Khalistani extremist — outside a gurdwara in Surrey, British Columbia.
Tensions escalated further when Canada expelled six Indian ministers in October 2024. India firmly denied the allegations, calling them baseless. In response, both nations cancelled official visits, suspended trade talks, and expelled senior diplomats.
India has long accused Canada of turning a blind eye to extremist activities among the Sikh diaspora. Indian authorities believed Trudeau’s administration was too tolerant of separatist rhetoric and too quick to publicly criticize India.
Carney’s win is therefore being closely monitored in both capitals.
Carney’s Vision for Foreign Policy
Sixty-year-old Mark Carney has previously served as the head of both the Bank of England and the Bank of Canada. His campaign emphasized national sovereignty and the need to restructure Canada’s foreign alliances, particularly amid trade challenges posed by the United States.
Carney drew attention with his remark that Donald Trump “wants to divide Canada so the U.S. can keep us,” portraying the former American president as a threat to Canada’s independence. He responded by promising to broaden Canada’s global trade relationships, identifying India as a key partner.
Despite recent setbacks, Carney has maintained that India remains a crucial ally and that Canada must align itself with countries that share democratic values. In a February interview with the Toronto Star, he said, “Different leaders, different policies, different approaches to governance.”
Congratulatory Messages from India
Prime Minister Narendra Modi was among the first international leaders to congratulate Carney, expressing optimism for new opportunities between the two countries.
“Warm congratulations to @MarkJCarney on being elected as Canada’s new Prime Minister, and to the Liberal Party on their well-earned victory,” PM Modi posted on XX “Strong adherence to the rule of law, vibrant people-to-people connections, and shared democratic values bind India and Canada together. I look forward to working with you to strengthen our cooperation and expand opportunities for our citizens.”
The Diaspora Factor
Preserving India’s sovereignty and territorial integrity remains a key priority for New Delhi. The Indian government sees overseas Khalistani support — through protests, social media campaigns, and alleged financial networks — as a major national security concern.
Incidents involving damage to Hindu temples by Sikh separatist groups further angered the Indian public, who felt Trudeau lacked the will to address these sensitive issues.
India continues to be one of the top sources of immigration to Canada. There are approximately 2.8 million individuals of Indian origin in Canada, including students, permanent residents, and temporary workers. With an estimated 427,000 Indian students currently in Canada, the community makes a significant contribution to the country’s labor and education sectors.
Despite political tensions, immigration remained steady under Trudeau. Carney is expected to continue this trend, especially for students, IT professionals, and skilled workers.
Reviving Trade Talks
The Comprehensive Economic Partnership Agreement (CEPA)—which had been stalled due to diplomatic tensions — was one of the key casualties of the India-Canada fallout. Negotiations on the trade deal, which had been in progress for years, were halted following the Nijjar controversy and reciprocal expulsions of diplomats.
Carney appears open to reviving CEPA. “In 2023, the value of services traded between India and Canada reached CAD 13.49 billion.” Before Carney’s leadership, both governments had been exploring further cooperation in areas like artificial intelligence (AI), fintech, green energy, and higher education. These sectors may now see renewed interest as both countries seek to reduce dependence on the U.S. and China.
AI-generated summary, reviewed by staff
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