India-Canada Relations: An Explainer on Diplomatic Breakdown and Recent Developments

India immediately dismissed these accusations. On September 19, 2023, Hindustan Times published a statement from India’s Ministry of External Affairs, calling the allegations "absurd and motivated." The ministry also emphasised that Canada had not provided any public evidence to support its claims and accused Ottawa of harbouring extremists who threaten India’s sovereignty.The presence of Khalistani supporters operating from Canadian soil and harming India’s has long been a source of concern for New Delhi. These separatist elements, while advocating from afar, have influenced bilateral tensions and contributed to a climate of mistrust, especially when linked to anti-India propaganda and extremist activities.

Over the years, this issue has grown into a major diplomatic flashpoint, with India viewing it as not just a domestic security concern but a broader challenge to its sovereignty, being amplified by international platforms.

India and Canada resume engagement after two-year freeze

India and Canada have agreed to restore full diplomatic services, reappoint high commissioners, and resume talks on trade and security cooperation, nearly two years after a diplomatic rupture following the killing of a Sikh separatist leader in British Columbia. This agreement was announced after a bilateral meeting between Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G7 summit held in Kananaskis, Alberta, in June 2025, as reported by AP 타이산카지노 on June 18, 2025.

According to The Guardian, the resumption of ties marks a significant development in the long-standing dispute that was triggered by the assassination of Hardeep Singh Nijjar, a prominent figure in the Khalistan movement, whose killing was later linked by Canadian intelligence to operatives associated with the Indian government.

The Origins of the Dispute: The Assassination of Hardeep Singh Nijjar

Hardeep Singh Nijjar, a Canadian citizen and outspoken supporter of the Khalistan separatist movement, was shot dead outside a Sikh temple in Surrey, British Columbia, in June 2023. His killing was confirmed by local authorities in British Columbia and later detailed in reports from BBC 타이산카지노 in September 2023, which noted the growing tensions in Canada’s Sikh community following the incident.

Nijjar had been labelled a terrorist by the Indian government in 2020 due to his alleged involvement in separatist activities. Despite these allegations, Nijjar consistently denied any links to extremist groups and continued to publicly advocate for Sikh self-determination from Canada.

The incident quickly raised concerns about foreign interference in Canada, particularly among Sikh Canadians and human rights organisations, as detailed in the same BBC 타이산카지노 report.

Trudeau’s Public Accusation Against India

On September 18, 2023, then-Canadian Prime Minister Justin Trudeau addressed the House of Commons and stated that Canadian intelligence agencies were investigating "credible allegations" connecting Indian government agents to Nijjar’s murder. As reported by Reuters in September 2023, Trudeau declared, “Canadian security agencies have been actively pursuing credible allegations of a potential link between agents of the Government of India and the killing of a Canadian citizen.”

India immediately dismissed these accusations. On September 19, 2023, Hindustan Times published a statement from India’s Ministry of External Affairs, calling the allegations "absurd and motivated." The ministry also emphasised that Canada had not provided any public evidence to support its claims and accused Ottawa of harbouring extremists who threaten India’s sovereignty.

Further escalation occurred in October 2023 when India demanded parity in diplomatic staffing levels, leading to the withdrawal of 41 Canadian diplomats from India. This move was described as a violation of the Vienna Convention on Diplomatic Relations, according to an October 2023 article in The New York Times. Canada criticised the Indian action as unprecedented and harmful to bilateral engagement.

Visa services for Canadian citizens in India were suspended, and several bilateral meetings on trade and cooperation were either cancelled or indefinitely postponed, as the standoff widened across multiple sectors.

Intelligence Findings and Criminal Investigations

By early 2024, the Royal Canadian Mounted Police (RCMP) had made progress in the investigation into Nijjar’s assassination. In May 2024, according to CTV 타이산카지노, Canadian authorities arrested multiple suspects with links to organised crime networks in India, including the Lawrence Bishnoi gang. Law enforcement officials noted that the suspects appeared to be part of transnational criminal operations with political connections.

In June 2025, a declassified report from the Canadian Security Intelligence Service (CSIS), reviewed by The Guardian on June 18, 2025, explicitly named India as a key actor involved in what it called “transnational repression.” The report alleged that Indian agents had conducted surveillance, issued threats, and harassed members of the Sikh community in Canada over a number of years.

The CSIS report further revealed that more than a dozen Sikh activists in Canada had been warned by Canadian authorities of credible threats to their safety, allegedly emanating from individuals connected to the Indian state.

Political Transition in Canada

In March 2025, a leadership change within Canada’s Liberal Party resulted in the appointment of Mark Carney as Prime Minister. Carney, a former Governor of both the Bank of Canada and the Bank of England, was seen as a pragmatic and internationally experienced figure. His foreign policy approach, as outlined in CBC 타이산카지노 reports from March 2025, focused on restoring global relationships and balancing national security with diplomatic engagement.

Carney stated early in his term that foreign interference and violence on Canadian soil would not be tolerated. However, he also acknowledged the importance of restoring diplomatic functionality with India, which had been among Canada’s top ten trading partners prior to the breakdown in 2023.

Modi’s G7 Invite and Community Reaction

In May 2025, the Canadian government extended an invitation to Prime Minister Narendra Modi to attend the G7 summit in Canada. This decision triggered criticism from several Sikh diaspora organizations. Groups such as Sikhs for Justice and the World Sikh Organization issued public condemnations, stating that the Canadian government should not normalize relations with India before accountability was established regarding Nijjar’s assassination.

The Toronto Star, in a June 2025 report, detailed the backlash from Sikh advocacy groups, who also called for a boycott of Modi’s visit to the G7 summit unless India agreed to cooperate more transparently with the Canadian investigation.

G7 Summit in June 2025: A Diplomatic Turning Point

Despite the opposition, the G7 summit in Kananaskis, Alberta, proceeded with Prime Minister Modi’s attendance. On June 17, 2025, Modi and Carney held a private bilateral meeting that resulted in an agreement to restore full diplomatic ties. According to The Economic Times (June 18, 2025), the meeting led to the mutual decision to reinstate high commissioners, restart consular services, and resume trade negotiations.

Canadian government sources stated that during the meeting, Ottawa reiterated its concerns over transnational repression and specifically raised the Nijjar case. The Indian Express, in its coverage from June 18, 2025, reported that India described the discussions as “constructive” and affirmed its interest in working with Canada on areas such as counter-terrorism and economic cooperation.

Restoration of Diplomatic Services and Trade Negotiations

As of June 20, 2025, both nations have begun reestablishing formal diplomatic infrastructure. AP 타이산카지노 confirmed that Canada has resumed consular operations in New Delhi, and Indian officials are expected to restore similar services in Ottawa within the coming weeks.

Trade ministries in both countries have agreed to resume talks on the Early Progress Trade Agreement (EPTA), a precursor to a comprehensive free trade deal that had been shelved since 2023. These discussions are expected to focus on key sectors such as digital technology, food security, and the supply of critical minerals.

Officials also confirmed that intelligence and law enforcement collaboration will resume, particularly in areas concerning the monitoring of extremist threats, terror financing, and international criminal networks.