Prime Minister Narendra Modi has accepted his Canadian counterpart Mark Carney’s invitation to attend the G7 Summit in Kananaskis in Alberta on June 15-17. This development has come amid murmurs in New Delhi’s diplomatic grapevine that Prime Minister Modi might skip the summit because of strained ties between India and Canada.
However, when the Canadian Prime Minister has himself dispelled doubts by emphasising indispensability of India at the G7 table, it is obvious that Ottawa under Mark Carney’s leadership wants to adopt a fresh approach towards New Delhi; it wants to prioritise economy over politics.
In the rapidly-shifting geopolitical scenario, when major international powers are aligning and realigning with countries to advance their economic, political, and strategic interests, Ottawa is trying to reset its relations with India, which had frayed during the nine-years rule of Justin Trudeau as Canada’s Prime Minister.
A few days back, the two countries witnessed the first ever official-level engagement in the recent past, when External Affairs Minister Dr S Jaishankar spoke with his Canadian counterpart Anita Anand and both ministers expressed their desire to strengthen bilateral relationship between the two countries.
Last month, Prime Minister Narendra Modi congratulated Canadian Prime Minister Mark Carney on the re-election of the Liberal Party in this North American country, signalling clearly about New Delhi’s intent to walk together with Ottawa to write a fresh chapter in their bilateral partnership, which had long been strained due to former Canadian Prime Minister Trudeau’s anti-India stance.
However, for India, significance of the forthcoming prime ministerial visit to Canada holds beyond the G7 agenda. It offers an opportunity not only to reset relations with Ottawa but also to press for tough action against Khalistani elements operating from the Canadian soil.
Will PM Modi ask Carney for action against Khalistani elements?
Pro-Khalistan groups based in Canada continue to pose threats to India’s sovereignty and territorial integrity. In this background, it must be seen whether Prime Minister Modi remains successful in nudging his Canadian counterpart to act tough against Khalistani elements or not.
When the Canadian Prime Minister has himself dispelled doubts by emphasising indispensability of India at the G7 table, it is obvious that Ottawa under Mark Carney’s leadership wants to adopt a fresh approach towards New Delhi; it wants to prioritise economy over politics
In the first week of May, when whole India was boiling in anger following the killing of 26 tourists in Pahalgam by Pakistan-based The Resistance Force (TRF), an offshoot of the dreaded terrorist outfit Lashkar-e-Taiba, a Khalsa Day parade was organised in the Greater Toronto Area (GTA).
The parade featured floats with pro-Khalistan propaganda, pro-Pakistan banners and imagery targeting Indian leaders. Inflammatory speeches, calling for the ouster of Hindus from the Canadian soil were also made. This incident took place only four-days after Prime Minister Mark Carney-led Liberal Party won the federal elections in Canada.
Much to the consternation of people in India, Canada-based Khalistani elements frequently issue open threats of harming Indian interests. Their parades often feature Pakistani flags, underscoring their provocative intent. New Delhi will like Prime Minister Carney to take decisive steps to end separatist activities being orchestrated from the Canadian soil.
Within Canada’s political elites, calls have also begun to cut ties with Khalistani elements advocating for the creation of a new Sikh nation from India. Last week, former Prime Minister Stephen Harper, in his speech in Brampton called on Canada to move past its dispute with India, arguing that the South Asian country is an indispensable partner in a volatile world.
Giving weight to his argument for improving relations with New Delhi, Stephen Harper called on Canadian political parties to sever ties with Sikh separatists who have for decades campaigned for a separate country called Khalistan.
Importance of India for Canada
Ottawa is keen to steady its shaking economy. It is experiencing trade-related heat from the US and as such, there is desperation among the leadership of the North American country to forge strong partnership with like-minded countries like India.
Prime Minister Mark Carney, leader of the Conservative Party Pierre Poilievre and former Prime Minister Stephen Harper realise that it is in Canada’s interest to stabilise relations with India, now the world’s 4th largest economy, and effectively the third-largest economy in purchasing power parity terms, after the US and China.
In 2024, the two-way trade between the two countries stood at CA$11.36 billion (approximately Rs 69,368 crore). In comparison, total bilateral trade between them was CA$ 10.74 billion (approximately Rs 65,723 crore). India’s exports to Canada include medicine, jewellery, smartphones, seafood, and diamond, while it imports goods such as peas, bituminous coal, lentils, potassium chloride and newsprint from the North American country.
Prior to tension that engulfed India-Canada relationship, the two countries were aiming for elevating economic partnership to a new level by closing their negotiations on an Early Progress Trade Agreement (EPTA).
However, ongoing negotiations on the EPTA were put on halt by Canada in August 2023 and the reason was a crisis precipitated by the killing of Khalistani activist Hardeep Singh Nijjar in Surrey, British Columbia in June 2023. Then Canadian Prime Minister Justin Trudeau had accused India of murdering Nijjar, which was promptly rejected by New Delhi. Later, a Canada Commission report also dismissed India’s link with the Nijjar killing.
For India, significance of the forthcoming prime ministerial visit to Canada holds beyond the G7 agenda. It offers an opportunity not only to reset relations with Ottawa but also to press for tough action against Khalistani elements operating from the Canadian soil
“This may have been the case with a disinformation campaign that followed the Prime Minister’s announcement regarding suspected Indian involvement in the killing of Hardeep Singh Nijjar (though again, no definitive link to a foreign state could be proven),” the 123-page report of ‘Public Inquiry into Foreign Interference in Federal Electoral Process and Democratic Institutions’ released in January 2025 said.
Even as this report is not considered as a conclusive report by Ottawa, Prime Minister Mark Carney appears inclined to breathe a fresh air in his country’s relationship with India at the time when US President Donald Trump’s disruptive policies have hit Canada hard.
Its economy is reeling under slowdown with unemployment rate going up to 6.9% and average joblessness among graduates standing at 11.2%, showed data from Statistics Canada. Gross Domestic Product contracted by 0.2% in February this year.
According to Deloitte, the global consultancy firm, the North American country’s GDP growth is estimated to hover just above 1% in 2025. High interest rates, inflationary pressure, and global supply chain uncertainties have been cited as key reasons for slowing down the country’s economy.
Investment in manufacturing and infrastructure sectors have significantly declined in Canada, while Foreign Direct Investment has also decreased; geopolitical tensions and uncertainty around the North American country’s trade policy are considered as reasons for this.
Pro-Khalistan groups based in Canada continue to pose threats to India’s sovereignty and territorial integrity. In this background, it must be seen whether Prime Minister Modi remains successful in nudging his Canadian counterpart to act tough against Khalistani elements or not
It is in this background that India, with its vast market, serves as a great opportunity for Canada to expand its business footprint, particularly in sectors like infrastructure, agriculture, clean energy, critical minerals, and advanced manufacturing.
Can Canada become a reliable Uranium supply source?
At the time when India, in its bid to position nuclear energy as a cornerstone of its energy security, has set an ambitious target of achieving 100 GW nuclear capacity by 2047, any improvement in relations with Canada would mark a significant diplomatic breakthrough.
As per the Canada government, the North American country is the second largest producer of Uranium, accounting for roughly 13% of total global output. It claims to have the world’s largest deposits of high-grade Uranium, with concentration reaching up to 20% – nearly 100 times higher than the global average. Nearly 85% of Canada’s total Uranium production is exported.
In this background, India would like to have stronger nuclear energy cooperation with Canada. In June 2010, the two countries signed a nuclear cooperation agreement and it came into force in 2013.
India would like to have stronger nuclear energy cooperation with Canada. In June 2010, the two countries signed a nuclear cooperation agreement and it came into force in 2013. In fact, Prime Minister Narendra Modi’s upcoming visit to Canada for the G7 Summit marks more than a diplomatic formality; it will be a pivotal moment in India-Canada relations
Two years later, the Department of Atomic Energy and Canada’s M/s CAMECO Inc, signed an agreement for supply of Uranium ore concentrate to India for five years between 2015-2020. While India will require Canada to revive the Uranium supply agreement, what New Delhi will particularly seek is a firm commitment from Ottawa to ensure an uninterrupted and unencumbered supply.
In fact, Prime Minister Narendra Modi’s upcoming visit to Canada for the G7 Summit marks more than a diplomatic formality; it will be a pivotal moment in India-Canada relations.
For a good and trusted relationship, however, it will be crucial for Ottawa to address India’s concern that emanates from growing anti-India activities in Canada. Pro-Khalistan campaign orchestrated from the North American country’s soil has taken an uglier shape.
It challenges India’s territorial integrity. Therefore, it should not be treated as a normal development; it must be addressed with a firm and decisive actions.
–The writer is a senior journalist with wide experience in covering international affairs. The views expressed are of the writer and do not necessarily reflect the views of Raksha Anirveda
