General Studies Paper-2

Context

• Two years after a major rupture in ties, India and Canada have agreed to restore the High Commissioners, and discussed restarting talks for a trade agreement, visa services, and other dialogue mechanisms.

About

• The decisions came during Prime Minister Narendra Modi’s talks with Canada’s newly elected Prime Minister Mark Carney on the sidelines of the G7 outreach session.
• The leaders also discussed the importance of restarting the stalled negotiations on the Trade Agreement (EPTA), with a view to paving the way for a Comprehensive Economic Partnership Agreement (CEPA).
• The two Prime Ministers discussed collaborations in “clean energy, digital transformation, artificial intelligence, LNG, food security, critical minerals, higher education, mobility, and supply chain resilience”.

Background of the Issue

• Khalistani separatist activities in Canada have strained ties; India has repeatedly raised concerns over Canada’s inaction.
• 2023 Diplomatic Row: Relations deteriorated after the Canadian PM alleged Indian involvement in the killing of a Canadian citizen linked to Khalistan extremism.
  • India dismissed the allegations and expelled Canadian diplomats.
  • Talks on trade and economic agreements were suspended due to the diplomatic fallout.

Brief on India-Canada Relations

• Historical Relations: India and Canada established diplomatic relations in 1947.
  • Shared democratic values and Commonwealth membership have underpinned ties.
  • Relations were historically strained after India’s nuclear tests in 1974 and 1998, due to Canada’s non-proliferation stance.
• Economic Cooperation: In 2024 (January – August), total bilateral trade in goods amounted to USD 8.55 billion (India’s exports: USD 5.22 billion and India’s imports: USD 3.33 billion).
  • Negotiations continue on a Comprehensive Economic Partnership Agreement (CEPA) and a Foreign Investment Promotion and Protection Agreement (FIPA).
• Civil Nuclear Cooperation: Nuclear Cooperation Agreement (NCA) signed in 2010, operational since 2013.
  • A Joint Committee oversees implementation of the 2010 Agreement on “Cooperation in Peaceful Uses of Nuclear Energy”.
• Space Cooperation: MoUs signed in 1996 and 2003 between ISRO and Canadian Space Agency (CSA).
  • Cooperation includes satellite tracking, space astronomy, and commercial satellite launches.
  • ISRO’s commercial arm ANTRIX has launched multiple Canadian nanosatellites.
• Science and Technology: Department of Earth Science and Polar Canada have started a programme for exchange of knowledge and scientific research on Cold Climate (Arctic) Studies.
  • A Memorandum of Cooperation between National Centre for Polar and Ocean Research (NCPOR) and POLAR Canada was signed in 2020.
• People-to-People Links: There are around 1.8 million Indo-Canadians and one million non-resident Indians in Canada, making up over 3% of its population.
  • India is the largest source of international students in Canada, with Indians making up around 40% of that group.
  • Strong cultural exchanges and vibrant diaspora influence bilateral perceptions.
• Multilateral Cooperation: Both countries cooperate in forums like the G20, Commonwealth, United Nations, and International Solar Alliance.

Conclusion

• India–Canada relations have strong foundations and significant potential, especially in trade, education, and clean energy. However, bilateral ties remain fragile, with political and security concerns acting as key irritants.
• The future of the relationship depends on how both countries manage these differences while leveraging shared interests.