Resetting India-Canada Ties

• 15 Oct 2025

For Prelims: Critical Minerals, Green Hydrogen, Biofuels, Carbon Capture, AI Impact Summit 2026, ANTRIX, Five Eyes, Quad, Quantum Computing, Semiconductors.                                                 

For Mains: Dynamics of India-Canada relations and associated challenges, Role of diaspora, and the impact of bilateral agreements on India's foreign policy and national security. 

Source: TH 

Why in News?

India and Canada have agreed on a series of measures to restore bilateral relations, as announced in a joint statement titled ‘Renewing Momentum Towards a Stronger Partnership’ by their foreign ministers. 

What are the Key Highlights of India-Canada Joint Statement on Strengthening their Partnership? 

• Adoption of New Roadmap: It is a new framework for the relationship, based on mutual respect, shared democratic values, rule of law, sovereignty, and territorial integrity, aiming to restore stability and build a constructive partnership. 
• Trade and Economic Cooperation: The Canada-India CEO Forum will resume in early 2026. Ministerial talks will focus on boosting bilateral trade and investment, with priority given to clean technology, infrastructure, agri-food, and digital innovation. 
• Clean Energy & Climate Action: To advance energy cooperation, a Critical Minerals Annual Dialogue will begin in March 2026, and the Canada-India Ministerial Energy Dialogue (CIMED) will be revived.  
  • Collaboration will focus on green hydrogen, biofuels, Carbon Capture, and electric mobility. 
• Science, Technology, and Digital Ties: The Joint Science and Technology Cooperation Committee (JSTCC) will be restarted. In AI collaboration, Canada will join India's AI Impact Summit 2026, and both countries will explore digital public infrastructure cooperation. 
• People-to-People Links: Both nations committed to refreshed collaboration in higher education, including AI and cybersecurity research and exploring Canadian university campuses in India.  
  • To facilitate this, the Joint Working Group on Higher Education will be revitalized to expand academic networks.

What are the Key Highlights of India-Canada Bilateral Relations? 

• Economic & Trade Partnership: Bilateral trade in goods and services exceeded 26 billion Canadian dollars (CAD) in 2023. Significant investments are highlighted by over CAD 75 billion from Canadian pension funds and a presence of over 600 Canadian companies in India. 
• Energy & Civil Nuclear Cooperation: Under the Nuclear Cooperation Agreement (2010), Canada is a key uranium supplier to India. A separate ministerial-level Energy Dialogue covers oil, gas, renewables, electricity, and clean technologies. 
• Security & Legal Frameworks: Security collaboration is based on a Joint Working Group (JWG) on Counter Terrorism (1997) and a Framework for Cooperation on Countering Terrorism (2018), while legal cooperation is strengthened by an Extradition Treaty (1987) and a Mutual Legal Assistance Treaty (1994). 
• Science & Technology: ISRO and the Canadian Space Agency (CSA) have MoUs, and ISRO’s commercial arm, ANTRIX, has launched several Canadian nanosatellites. 
• People-to-People & Educational Links: Canada hosts one of the largest Indian diasporas abroad, with nearly 1.8 million people of Indian origin contributing significantly to society and economy. India is also a top source of international students for Canada, with about 427,000 Indian students studying there. 

What are the Major Challenges in India-Canada Relations? 

• Khalistan Issue: India accuses Canada of allowing Khalistani separatists to operate freely—organizing rallies, glorifying violence, and funding activities to destabilize India. 
  • India views it as a national security threat and blames Canada for inaction against incitement and foreign interference. 
• Trade and Economic Disruptions: Due to the political rift, negotiations for a Comprehensive Economic Partnership Agreement (CEPA) have been officially paused since 2023 and are effectively frozen.  
  • The diplomatic fallout has created an unpredictable environment, discouraging new investments and partnerships. 
• Diplomatic Strain: The public accusations, expulsions, and pause in official dialogues have eroded the foundational trust necessary for a functional bilateral relationship. 
• Strategic Misalignment: India leads in countering Chinese influence in the Indo-Pacific and is a key Quad member, while Canada’s approach to China is inconsistent, balancing economic interests and security concerns.  
  • Canada’s foreign policy aligns with Five Eyes partners (US, UK, Australia, NZ), whereas India-US relations involve a complex balance, especially regarding Russia. 
• Divergence in Global Governance: Canada emphasizes a rules-based international order with focus on human rights and international law, while India supports these principles but prioritizes strategic autonomy, national development, and reformed multilateralism, viewing institutions like the UN Security Council as outdated. 

What Measures can be Taken to Strengthen India-Canada Relations? 

• Diplomatic Recalibration: Establish a Bilateral Security and Sovereignty Dialogue at the National Security Advisor level to address Khalistani extremism with protocols for intelligence sharing, and legal cooperation.  
  • Institute a 2+2 Dialogue Mechanism to bridge strategic misalignment on Indo-Pacific security, counter-terrorism, and maritime cooperation.   
• Economic Integration: Adopt a time-bound, sector-specific approach with Early Harvest Agreements in less contentious sectors like clean technology, agri-tech, and digital services to revive CEPA.  
• Technological Cooperation: Fast-track the Critical Minerals Dialogue and energy talks to position Canada as a key partner in India's green transition through technology and financing for Green Hydrogen, and electric mobility. 
  • Establish an India-Canada Innovation Bridge to foster collaboration between startups, venture capital, and joint R&D in quantum computing, cybersecurity, and semiconductors. 
• Strengthening the Human Capital: Pursue Canadian university campuses in India under the new Foreign Educational Institutions (FEI) regulations, 2023, focusing on joint/dual degree programs and research in STEM fields to enhance educational exchange. 
  • Engage the 1.8 million-strong Indian diaspora by deepening cultural ties through expanded festivals, art, and film collaborations. 

Conclusion 

The renewed India-Canada engagement, anchored by the 2025 joint statement, aims to restore trust, drive economic synergy, advance technological and clean energy cooperation, and deepen people-to-people bonds. Overcoming legacy challenges through structured dialogues and sectoral integration offers both nations a blueprint for sustainable, future-ready bilateral relations. 

Drishti Mains Question:

Discuss the major irritants in India-Canada ties post-2023 and suggest viable diplomatic and economic measures for their resolution.

Frequently Asked Questions (FAQs) 

1. What is the India-Canada Joint Statement 2025? 
It is a roadmap titled Renewing Momentum Towards a Stronger Partnership, aiming to restore bilateral relations through trade, energy, technology, and people-to-people ties. 

2. What are the major challenges in India-Canada relations? 
Key challenges include Khalistani extremism, stalled CEPA negotiations, diplomatic strain, strategic misalignment on China, and divergence in global governance priorities. 

3. What is the significance of the proposed Critical Minerals Annual Dialogue? 
This dialogue is vital for India's green energy transition, securing a mineral supply chain for batteries, EVs, and renewable technologies, with Canada as a resource-rich partner. 

UPSC Civil Services Examination, Previous Year Question (PYQ)  

Prelims 

Q. Consider the following statements with regard to the G7:

1. The G7 is a formal grouping of leading industrialised nations.  
2. The European Union has been part of all working sessions of the G7 since the 1981 Ottawa Summit.  
3. The Group of Eight was constituted in 1998 as Russia became a member of the grouping.  

How many of the statements given above are correct?  

(a) Only one  

(b) Only two  

(c) All three  

(d) None  

Ans: (b)

Q. In which one of the following groups are all the four countries members of G20? (2020)

(a) Argentina, Mexico, South Africa and Turkey  

(b) Australia, Canada, Malaysia and New Zealand  

(c) Brazil, Iran, Saudi Arabia and Vietnam  

(d) Indonesia, Japan, Singapore and South Korea  

Ans: (a)