What Liberal Party's victory means for India-Canadian relations
What's the story
Mark Carney and the Liberal Party's win in the Canadian elections signal a possible revival of one of the country's most strained foreign ties: with India.
Carney, a political novice, has promised to repair relations with India.
He said during his campaign, "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."
Statement
Relationship with India 'incredibly important': PM
On Monday, he again hinted that he may reset ties with New Delhi if he were elected, describing the relationship with India as "incredibly important."
"It's an incredibly important relationship, the Canada-India relationship, on many levels. On the personal level, with Canadians having deep personal ties, economically, strategically," he said.
Without explicitly addressing the killing of pro-Khalistan activist Hardeep Singh Nijjar, he suggested that differences that led to the deterioration of ties could be remedied.
Diplomatic tensions
2023 saw India-Canada relations at an all-time low
"There are strains on that relationship that we didn't cause...but there is a path forward to address those with mutual respect and to build out," he said.
India-Canada relations hit rock bottom in 2023 over allegations by the Trudeau government implicating "Indian agents" in the murder of Nijjar, a Canadian citizen and Khalistani terrorist.
India denied any involvement in Nijjar's killing and condemned these baseless accusations, leading both nations to expel top envoys, freeze trade negotiations, and suspend official visits.
Trade diversification
Carney's vision for Canada's foreign alliances
Carney, former governor of both the Bank of Canada and the Bank of England, argued for national sovereignty and restructuring Canada's foreign alliances.
He promised diversified trade ties, specifically naming India as an important partner.
Despite strains in the recent past, he reiterated that Canada needs commercial partnerships with similar democratic values, and India is still an important partner.
"Different person, different policies, different approach to governing," Carney said in a February interview with the Toronto Star.
Immigration
Indian government's stance on Khalistani elements abroad
The Indian government perceives support for Khalistani elements abroad as a national security threat.
Many considered Trudeau too much of a pushover when it came to Indian concerns, especially when Sikh separatists were allowed to vandalize Hindu temples.
Despite diplomatic tensions, immigration from India remained high during Trudeau's tenure.
Carney is expected to keep up this policy track, especially for skilled professionals, tech workers, and students who are crucial for Canada's education and labor market.
Economic partnership
Carney's victory could revive stalled trade agreement
The Canada-India Comprehensive Economic Partnership Agreement (CEPA) was stalled due to the diplomatic feud. However, Carney's remarks indicate a willingness to revive CEPA.
Bilateral services trade in 2023 stood at CAD 13.49 billion (over ₹830 billion) as both governments explored expanded cooperation in AI, fintech, green energy, and higher education.
These areas may regain traction under Carney's leadership as both economies look to reduce dependence on China and the US.