NEW DELHI: Mark Carney, set to become Canada’s next Prime Minister, has expressed his intent to repair the strained relationship with India, a move that could signal a major shift in ties that had deteriorated during Justin Trudeau’s leadership. Carney emerged victorious in the race to succeed Trudeau as Canada’s next Prime Minister, securing 85.9% of the votes in the Liberal Party leadership contest.
Ahead of the elections, Carney addressed the issue of US tariffs on Canada during a media interaction in Calgary, Alberta, as Washington and Ottawa find themselves at odds over the tariff threat and the looming trade war.
“What Canada will be looking to do is to diversify our trade relationship with like-minded countries,” Carney said. “And there are opportunities to rebuild the relationship with India. There needs to be a shared sense of values around that commercial relationship. If I’m prime minister, I look forward to the opportunity to build that,” Carney said.
After Trudeau had claimed in Parliament last September that there were “credible allegations” suggesting Indian agents were involved in the assassination of pro-Khalistan separatist leader Hardeep Singh Nijjar in Surrey, British Columbia, ties between the two countries plummeted.
India quickly dismissed the Canadian accusations, with the External Affairs (MEA) Ministry reiterating that “Canada shared no evidence.” The MEA criticised Trudeau’s government for making unsubstantiated allegations and supporting the pro-Khalistan elements. The fallout resulted in both nations expelling diplomats in a tit-for-tat exchange.
Carney had previously led both the Bank of Canada and the Bank of England and also headed the board of Brookfield Asset Management, which has invested in India's realty, renewable energy and infrastructure sectors.
Improving ties after Trudeau’s exit and Ottawa addressing India’s security concerns can give a boost to the robust economic, investment and people to people relationship.
With nearly 1.8 million Indo-Canadians and another 1 million non-resident Indians, Canada hosts one of the largest Indian diasporas abroad, accounting for more than 3% of its total population. An estimated 427,000 Indian students are studying in Canada.
Canadian pension funds have collectively invested over CAD 75 billion in India, reflecting the country’s appeal as an attractive investment destination. Over 600 Canadian companies operate in India, while more than 1,000 are actively seeking business opportunities in the Indian market. Indian companies in Canada are involved in various sectors such as IT, banking, pulp and fiber, natural resources, health sciences, and financial services.
