
In his congratulatory message to his Canadian counterpart Mark Carney, whose Liberal Party bounced back to win the country’s federal elections, Prime Minister Narendra Modi spoke of how the two countries are bound by democratic values, commitment to the rule of law and people-to-people ties.
While the stress on the rule of law underlines India’s primary concern with Canada, Carney’s win provides an opportunity to reset bilateral ties that hit a nadir during the tenure of his predecessor Justin Trudeau, who accused India of being involved in the killing of terrorist Hardeep Singh Nijjar in 2023 and irked India by commenting on the 2020 farmers’ protests.
The Canadian result bodes well for India on two counts. One, Carney has made it clear that rebuilding “the incredibly important” ties with India is a priority. Two, it showed a sharp erosion of support for Khalistani sympathiser Jagmeet Singh’s New Democratic Party (NDP), which propped the minority Trudeau government and shaped its antagonism towards India. NDP’s strength in the Canadian parliament fell from 24 to seven, and Jagmeet himself failed to retain his seat.
The India-Canada relations hinge on trade, security and immigration. While bilateral trade was not affected much by the friction, concerns over security and immigration worsened.
India wants Canada to act against Khalistani supporters, and though Carney has not addressed the allegations surrounding Nijjar’s killing, he has taken on a nuanced tone and talked about “a path forward” to address issues with mutual respect.
New Delhi is also concerned about the well-being of Canada’s 3-million-strong Indian diaspora that includes students. The Liberal Party’s manifesto promised to cap immigration at 5 percent of the population by 2027. But it’s hoped that Carney, an economist who served as central bank governor in both England and Canada, would take into account the contributions that students, skilled professionals and tech workers make while formulating policies.
Carney’s win signals the possibility of reviving the free-trade negotiations that were put on hold under Trudeau. Given that it’s Donald Trump’s bullying on trade that played a role in his surprise victory, Carney understands the importance of forging better relations with countries other than the US, and especially with a large economy like India.
The two countries need to work together to counter the emerging geo-economic challenges. The election provides the best chance in years for such a realignment.