New Delhi expressed optimism about rebuilding ties with Canada on Friday (March 21, 2025), following the recent change in leadership in Ottawa. Mark Carney, who replaced Justin Trudeau as Prime Minister, has taken over at a time when relations between the two nations have been strained over issues related to extremism and secessionism.

India’s Ministry of External Affairs (MEA) stated that it is looking forward to restoring bilateral relations with Canada on the basis of “mutual trust and sensitivity.” New Delhi attributed the downturn in ties to the perceived “license” given to extremist and secessionist elements in Canada under Trudeau’s tenure, which led to serious tensions between the two countries.

Strained Ties Under Trudeau’s Leadership

India-Canada relations deteriorated significantly during Trudeau’s tenure, particularly after allegations of Indian involvement in the killing of Hardeep Singh Nijjar, a Khalistani separatist leader, in June 2023. Trudeau’s public remarks accusing Indian agents of being linked to the killing caused a diplomatic standoff, with both nations expelling diplomats and freezing high-level talks.

➡️ Khalistani Influence in Canada: India had consistently raised concerns over Canada providing a safe haven to Khalistani separatists and extremist groups that promote anti-India rhetoric and activities.
➡️ Allegations of Interference: Trudeau’s government accused India of interfering in Canada’s internal affairs, further fueling mistrust and damaging bilateral relations.

New Chapter Under Mark Carney’s Leadership

With Mark Carney assuming office as Canada’s Prime Minister, New Delhi is signaling a willingness to move forward. The MEA, in its statement, expressed hope that the change in leadership would pave the way for “constructive engagement and dialogue” to address longstanding concerns.

➡️ Call for Sensitivity and Respect: India emphasized that any progress in rebuilding ties would hinge on Canada’s recognition of India’s sovereignty and concerns about extremism.
➡️ Focus on Security and Stability: New Delhi reiterated its demand that Ottawa take concrete steps to curb activities of extremist groups operating from Canadian soil, which pose a threat to India’s security and stability.

Diplomatic Reset on the Horizon?

Analysts believe Carney’s leadership offers an opportunity for a diplomatic reset between the two countries, which share historical ties, vibrant people-to-people connections, and strong trade relations.

➡️ Potential for Dialogue: With Trudeau no longer in office, there is optimism that India and Canada can now engage in meaningful dialogue to resolve past differences and focus on shared interests.
➡️ Trade and Economic Cooperation: Both nations have a strong economic partnership, with bilateral trade exceeding $10 billion annually. Efforts to revive talks on a Comprehensive Economic Partnership Agreement (CEPA) could gain momentum under the new administration.

Challenges Still Linger

While Carney’s leadership provides a window of opportunity, challenges remain.

➡️ Addressing Extremism Concerns: India expects Canada to take firm action against extremist groups and prevent the use of Canadian soil for anti-India activities.
➡️ Public Perception in Both Countries: Years of strained relations have created mistrust on both sides, which will require sustained diplomatic efforts to overcome.

India’s Expectations from Canada

India’s Foreign Ministry underscored that “any meaningful progress in bilateral ties would depend on Canada demonstrating a clear commitment to addressing India’s legitimate concerns.” New Delhi reiterated that “respect for each other’s core interests” is essential to fostering trust and rebuilding the relationship.

➡️ Stronger Law Enforcement: India is seeking stronger Canadian law enforcement measures to clamp down on separatist activities.
➡️ Diplomatic Dialogue: Regular high-level diplomatic engagements are seen as critical to mending ties and exploring common ground on regional and global issues.

A New Beginning with Cautious Optimism

India is cautiously optimistic about turning the page in its relationship with Canada. While Carney’s ascent to power marks the beginning of a new chapter, the path to rebuilding trust and mutual respect will require sustained diplomatic engagement, concrete actions, and a shared commitment to tackling extremism.

For now, New Delhi is watching closely to see whether Canada’s new leadership will usher in a more constructive and respectful era of bilateral cooperation.