Canada Election 2025: The win of Mark Carney and the Liberal Party in Canada’s federal elections has made way for a possible reboot of strained India-Canada relations. Carney, a onetime central banker now turned politician, has put reviving ties with India at the top of the agenda, marking a strategic departure from the foreign policy of previous Prime Minister Justin Trudeau.
A Fresh Approach To India
In his campaign, Carney stressed diversifying Canada’s international partnerships, saying he would “look forward to the chance to build” a new relationship with India based on common democratic values.
“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,” he said.
Carney’s remarks are made when bilateral relations have hit a historic low after diplomatic tensions in 2023.
Diplomatic Breakdown Under Trudeau
India-Canada relations soured dramatically after Prime Minister Trudeau blamed Indian agents for being involved in the murder of Canadian citizen and Khalistani separatist Hardeep Singh Nijjar. India called the allegation baseless and politically motivated.
The crisis intensified in October 2024 with Canada’s expulsion of six Indian diplomats, and India reciprocated with a similar move. Trade negotiations were put on hold, and top-level interactions were frozen.
New Delhi charged the Trudeau government with keeping its eyes closed to Khalistani extremism and doing nothing against desecration of Hindu temples and hate speech in Canada’s Sikh diaspora.
Carney’s Global Vision
Carney, 60, who has headed both the Bank of Canada and the Bank of England, has set out a foreign policy based on democratic alliances and economic independence. He has been stridently critical of former US President Donald Trump and is in favor of minimizing trade reliance on any one nation.
In a February interview, he averred, “Different person, different policies, different approach to governing,” signaling a new era for Canadian diplomacy.
Trade, Immigration In Focus
Despite strained diplomatic relations, immigration from India continued to remain strong under Trudeau. Carney is likely to have robust immigration links, especially for students and technology professionals. More than 427,000 Indian students are studying in Canada presently, and they form an important pillar of the Canadian economy.
One of the key tasks in the future will be reviving the long-pending Comprehensive Economic Partnership Agreement (CEPA) between the two nations. Bilateral services trade in 2023 was CAD 13.49 billion. Collaboration in AI, fintech, green energy, and education may get new momentum under Carney.
Strategic Importance Of India
Carney has positioned India as a strategic counterbalance in a changing world order, particularly in the face of rising fears about authoritarianism and global trade volatility. His election has been greeted warily in New Delhi, where officials are waiting to see if there will be a real change in tone and policy.
Whether or not Carney can bring about a sustainable thaw in India-Canada relations will hinge on initial actions, including potential diplomatic efforts, trade negotiations, and positions on Canadian extremist activity.
