A turning point for India-Canada ties

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A turning point for India-Canada ties

Wednesday, 18 June 2025 | Pioneer

Prime Minister Modi’s Canada visit could mark a new chapter in India’s diplomatic engagement with the West

Prime Minister Narendra Modi’s visit to Canada for the G7 Summit has captured global attention — not merely for its diplomatic weight but for its potential to recalibrate several key international relationships. This visit, his first to Canada since 2015, marks a crucial inflection point in India’s foreign policy, Canada’s outreach under a new leadership, and possibly, even in the broader Indo-Pacific dynamics that include China. This visit assumes heightened significance as it comes on the heels of a major diplomatic fallout between India and Canada.

In 2023, ties hit rock bottom following the killing of Khalistani separatist Hardeep Singh Nijjar in British Columbia, with then Prime Minister Justin Trudeau suggesting Indian involvement — a claim India flatly denied. The recent change in Canadian leadership, with Mark Carney taking office after Trudeau’s exit, seems to signal a new willingness to repair and rebuild the ties. Carney’s invitation to PM Modi to attend the G7 Summit in Alberta was more than just protocol — it was an overture of trust, diplomacy, and re-engagement. Modi’s acceptance of the invitation, and his public emphasis on “mutual respect and shared interests,” underscores India’s readiness to reset the relationship. On the sidelines of the two-day summit PM Modi is expected to hold bilateral meetings not only with PM Carney but also with several other world leaders. With India and Canada both being vibrant democracies with strong people-to-people ties — bolstered by a diaspora of over 1.6 million Indo-Canadians — the scope for strategic cooperation in areas like education, technology, climate change, and trade remains vast. In 2024, bilateral trade in goods stood at $8.6 billion, nearly evenly split between exports and imports. Services trade was even more significant, at $14.3 billion. Modi’s visit could serve to unlock stalled trade discussions, revitalise strategic partnerships, and perhaps even set the stage for a long-pending Free Trade Agreement. Although India is not a formal member of the G7, Modi has been a regular invitee since 2019 — a testament to India’s rising geopolitical and economic influence. This year’s G7 deliberations are especially charged, focusing on intensifying global crises: the ongoing Russia-Ukraine war, fresh conflict in West Asia following Iran-Israel strikes, and economic instability triggered by geopolitical realignments and trade tensions. India’s position as a neutral but influential voice on many of these issues — particularly the Ukraine conflict — places it in a unique spot. Modi’s presence offers the West a crucial bridge to the Global South, while allowing India to assert its values of multilateralism and peaceful diplomacy.

This visit may offer an indirect way to resolve tensions with China as well. With rising anti-China sentiment in several G7 countries and a growing Indo-Pacific strategy that seeks alternatives to Chinese hegemony, India’s role becomes pivotal. A recalibrated India-Canada axis, especially under a more globally nuanced leader like Carney, could act as a soft diplomatic channel for India to manage its competitive yet critical relationship with Beijing. Modi’s 23-hour tour may well be the catalyst for a series of long-overdue resets, not just with Canada, but with the world.

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