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India Canada Relations: History and Recent Challenges for UPSC Exam

India Canada relations deteriorated recently with both governments expelling diplomats. Learn about recent developments, bilateral ties, and the Khalistan issue in India Canada Relations.
authorImageDeeksha Dixit8 Nov, 2024
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India Canada Relations

India Canada Relations: India and Canada, two nations known for their multiculturalism and democratic values, have shared a unique relationship since India's independence. However, recent events have spotlighted some complex challenges.

While India accused Canada of providing a safe haven for Khalistani terrorists, the Canadian government blamed India for political interference. These developments have made India Canada relations an important topic for UPSC International Relations subject. Keep reading to learn more about this topic!

Recent Developments in India Canada Relations

India Canada relations have been significantly strained in recent months, with both countries expelling their top diplomats recently . The diplomatic ties between the two nations came under strain after issues related to the Khalistan movement surfaced. Canadian Prime Minister Justin Trudeau’s public statements and policies on certain domestic groups have created friction, leading to mutual tensions. In response to the ongoing diplomatic standoff, India took the step of temporarily suspending visa services for Canadian citizens in 2023, citing security risks. At the same time, Canadian citizens were advised to exercise caution while traveling in India, a move that further emphasized the gravity of the situation. These developments have created a tense atmosphere, with both nations facing increasing challenges in managing their relationship.

History of India Canada Relations

India and Canada established formal diplomatic ties in 1947 , shortly after India gained independence. Initially, both nations shared a friendly relationship grounded in common values and Commonwealth membership. However, in the 1970s, relations took a downturn due to India’s nuclear tests, leading Canada to impose sanctions and limit cooperation. Despite these setbacks, both nations resumed friendly ties in the 1980s, focusing on trade and immigration. The signing of the 2009 civil nuclear cooperation agreement was a significant step in rebuilding trust, allowing Canada to export uranium to India for peaceful energy production. Since then, both countries have worked to strengthen economic and educational collaborations.

India Canada Bilateral Relations

India Canada bilateral relations span across multiple areas, including trade, education, technology, and defense cooperation. With a significant Indian diaspora, Canada has also become a hub for Indian students and professionals seeking higher education and career opportunities. Here are some areas of cooperation between India and Canada:
  • Trade and Investment: Bilateral trade reached USD 9.36 billion in 2023, with India’s exports to Canada totaling USD 5.56 billion. Both countries are engaged in various sectors, including pharmaceuticals, IT, and natural resources.
  • Education and People-to-People Ties: Canada is home to over 427,000 Indian students, making India the largest source of international students. The two countries have strong cultural and academic exchanges, with institutions like the Shastri Indo-Canadian Institute
  • Strategic and Security Cooperation: India and Canada collaborate on counter-terrorism through the Joint Working Group (JWG) established in 1997. Civil nuclear cooperation, including the 2010 Nuclear Cooperation Agreement, and energy dialogues further strengthen ties.
  • Science and Technology: Both nations have deepened scientific collaboration, with joint research in fields like biotechnology, space exploration, and sustainable energy. The Indian Space Research Organisation (ISRO) and the Canadian Space Agency (CSA) have signed several MoUs for satellite tracking and space research.
  • Cultural and Diplomatic Engagements: India and Canada also engage in significant cultural exchanges, supported by initiatives such as the India-Canada Co-Production Agreement in films, commemorative stamp releases by Canada Post and India Post, and academic exchanges through the India-Canada Consular Dialogue.
These initiatives highlight the strength and depth of India Canada bilateral relations, with each sector benefiting from mutual contributions.

Challenges to India Canada Relations

Despite these positive aspects, several challenges strain India Canada relations:
  • Political Differences: Canada’s views on human rights issues and immigration policies sometimes clash with India’s perspectives. While both countries share democratic principles, there are varying approaches to handling international human rights dialogues.
  • Khalistan Movement: One of the most sensitive issues is the presence of pro-Khalistan sentiments in Canada. The India High Commission in Canada has raised concerns over this issue, as certain elements within Canada openly support a separatist movement.
  • Diplomatic Spats: Allegations of foreign interference, like in the recent Hardeep Singh Nijjar case, have caused a diplomatic deadlock. These incidents damage trust and make it harder for countries to work together on common issues.
  • Economic Disagreements: While trade is a positive factor, disagreements over specific trade policies and delays in finalizing Comprehensive Economic Partnership Agreement (CEPA) have slowed economic growth between the nations. Canada's concerns over India’s protectionist policies, and India’s concerns about Canadian barriers in sectors like agriculture, add another layer of complexity.
  • Divergence on Global Fourm: Canada’s stance on China contrasts with India’s, affecting collaboration in forums like the Indo-Pacific strategy, where India seeks support against China's regional influence. This difference in approach impacts their ability to work together on global issues.

Khalistan Movement in Canada

Canada has a sizable Sikh population, with a fraction of this community advocating for Khalistan, a separatist movement seeking to create an independent Sikh state. India views the Khalistan movement as a threat to its sovereignty and has repeatedly raised concerns about its supporters in Canada. Canadian authorities, however, emphasize freedom of expression, complicating the Indian government’s calls for strict action against pro-Khalistan activities. This ideological gap creates tension and disrupts diplomatic progress.

Way Forward

Despite these challenges, there are opportunities for India and Canada to rebuild and strengthen their relationship. These include:
  • Enhanced Diplomatic Engagement: High-level talks and consistent dialogue can address misunderstandings and enhance mutual trust. Diplomatic channels can be strengthened to prevent or quickly resolve issues before they escalate.
  • Focused Economic Cooperation: Finalizing trade agreements like CEPA can boost economic ties and create mutual economic benefits, making relations resilient to political differences.
  • Respect for Sovereignty and Internal Security: Both nations must respect each other's sovereignty and immediately address concerns related to indian diaspora and Khalistan issue.
  • Collaboration on Global Issues : Both nations can utilize platforms like the G20 and the United Nations to work on shared concerns such as climate action, cybersecurity, and global health, which can help ease political tensions.
India and Canada share deep historical and people-centric ties that hold the potential for a constructive relationship. Despite recent challenges, proactive diplomatic efforts and shared interests offer a way for future collaboration. For more in-depth learning and guidance on the exam syllabus, check out Physics Wallah’s UPSC Courses to enhance your preparation!
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India Canada Relations FAQs

What is the current relationship between India and Canada?

The relationship is currently strained due to recent diplomatic tensions and differences over the Khalistan issue and foreign policy stances.

Why is the Khalistan movement a concern in India-Canada relations?

The movement is seen as a separatist threat by India, and its support in Canada has led to diplomatic friction between the two countries.

How significant is trade between India and Canada?

Bilateral trade is significant, reaching approximately USD 9.36 billion in 2023, covering sectors like agriculture, pharmaceuticals, and technology.

What role does the Indian diaspora play in Canada?

The Indian diaspora strengthens people-to-people ties, contributes to Canada’s economy, and serves as a bridge between the two nations.

Why are India and Canada facing diplomatic challenges?

India and Canada are facing diplomatic challenges due to differing views on issues like the Khalistan movement and Canada’s stance on China.
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