Mark Carney’s election as Canada’s new Prime Minister marks a potential turning point in the country’s strained relationship with India. A seasoned economist and former central bank governor, Carney has identified rebuilding ties with India as a foreign policy priority, calling for stronger commercial relationships based on shared democratic values.

Relations between India and Canada deteriorated sharply in 2023 following Canadian accusations implicating Indian agents in the killing of Hardeep Singh Nijjar, a Khalistani separatist, in British Columbia. The fallout led to diplomatic expulsions, frozen trade talks, and suspended official engagements. India strongly denied the allegations and condemned Canada’s tolerance of extremist elements.

Carney, in his campaign, acknowledged the deterioration and expressed his intent to “diversify trade partnerships” by renewing engagement with India. “There are opportunities to rebuild this vital relationship,” he said during a key address, positioning India as a critical partner for Canada’s economic and geopolitical realignment.

The diplomatic reset may revive stalled trade negotiations, particularly the long-suspended Comprehensive Economic Partnership Agreement (CEPA), which had shown promise before the 2023 crisis. Bilateral services trade stood at CAD 13.49 billion last year, with further potential in sectors like green energy, fintech, AI, and higher education.

India remains one of Canada’s largest sources of immigrants, with over 427,000 Indian students and millions of Indo-Canadians contributing to the country’s workforce and society. Carney is expected to maintain high immigration flows, particularly for skilled and tech-based talent.

While rebuilding trust will require careful diplomacy, Carney’s leadership represents a shift from his predecessor’s combative stance. His emphasis on shared values and strategic trade suggests a fresh opportunity for India and Canada to move past recent tensions and build a more balanced, respectful partnership.

Mark Carney’s election as Canada’s new Prime Minister marks a potential turning point in the country’s strained relationship with India. A seasoned economist and former central bank governor, Carney has identified rebuilding ties with India as a foreign policy priority, calling for stronger commercial relationships based on shared democratic values.

Relations between India and Canada deteriorated sharply in 2023 following Canadian accusations implicating Indian agents in the killing of Hardeep Singh Nijjar, a Khalistani separatist, in British Columbia. The fallout led to diplomatic expulsions, frozen trade talks, and suspended official engagements. India strongly denied the allegations and condemned Canada’s tolerance of extremist elements.

Carney, in his campaign, acknowledged the deterioration and expressed his intent to “diversify trade partnerships” by renewing engagement with India. “There are opportunities to rebuild this vital relationship,” he said during a key address, positioning India as a critical partner for Canada’s economic and geopolitical realignment.

The diplomatic reset may revive stalled trade negotiations, particularly the long-suspended Comprehensive Economic Partnership Agreement (CEPA), which had shown promise before the 2023 crisis. Bilateral services trade stood at CAD 13.49 billion last year, with further potential in sectors like green energy, fintech, AI, and higher education.

India remains one of Canada’s largest sources of immigrants, with over 427,000 Indian students and millions of Indo-Canadians contributing to the country’s workforce and society. Carney is expected to maintain high immigration flows, particularly for skilled and tech-based talent.

While rebuilding trust will require careful diplomacy, Carney’s leadership represents a shift from his predecessor’s combative stance. His emphasis on shared values and strategic trade suggests a fresh opportunity for India and Canada to move past recent tensions and build a more balanced, respectful partnership.