Syllabus: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Context: India and Canada issued a joint statement during the visit of Maninder Sidhu, Canada’s Minister for Export Promotion, International Trade and Economic Development. The visit held at the invitation of Piyush Goyal, Minister for Commerce and Industry.
Key Outcomes of the Meeting
- Critical Minerals & Clean Energy
- Both countries agreed to strengthen long-term supply chain partnerships in critical minerals, essential for India’s clean-energy transition.
- Emphasis on collaboration in clean energy technologies and new-age industrial expansion linked to decarbonisation.
- Investment & Trade Expansion
- Ministers agreed to identify and expand investment opportunities in key sectors.
- Focus sectors include:
- Aerospace,
- Dual-use capabilities,
- Advanced industrial technologies.
- Bilateral Economic Engagement
- Both sides acknowledged the need to deepen trade ties as a pillar of economic growth and resilience.
- Commitment aligns with guidance provided by the Prime Ministers of both countries during their meeting on the sidelines of the G7 Summit in Kananaskis, Canada.
- Renewing Diplomatic Momentum
- Foreign Ministers of both nations had earlier issued a joint statement aimed at “renewing momentum” in bilateral relations.
- Trade identified as the cornerstone of partnership, signalling attempts to stabilise ties after recent diplomatic tensions.
India–Canada Relations
- Historical Overview
- India and Canada share long-standing ties rooted in democracy, Commonwealth membership, and shared political values.
- Diplomatic relations were formally established in 1947, with early cooperation in agriculture, education, nuclear energy, and trade.
- Engagement expanded consistently through bilateral visits, institutional dialogues, and developmental partnerships.
- Trade and Economic Cooperation
- Bilateral trade reached $33.9 billion in 2024, showing sustained growth.
- India imports fertilisers, pulses, and energy products, while exporting pharmaceuticals, textiles, and IT services to Canada.
- Canadian pension funds are major investors in India, especially in infrastructure and renewable energy, making Canada a key long-term capital source.
- Diaspora and Cultural Linkages
- Canada hosts over 1.6 million persons of Indian origin, one of its largest immigrant groups.
- The diaspora holds significant roles in politics, academia, entrepreneurship, and public life.
- With 3 lakh Indian students, India is the largest source of foreign students in Canada, deepening educational partnerships.
- Recent Strains in Relations
- Relations deteriorated in 2023 when PM Trudeau alleged Indian involvement in the killing of Khalistani separatist Hardeep Singh Nijjar.
- India rejected the charge as “absurd and politically motivated”, resulting in suspended trade talks and diplomatic downgrades.
- Under new PM Mark Carney, both nations are seeking to restore momentum, emphasising mutual respect, sovereignty, and constructive engagement.
