Brief Context
Context The Canadian Foreign Minister paid a state visit to India where both sides agreed to restore relations, including relaunching the energy dialogue. About The process of normalisation of diplomatic relations began when PM Modi met his Canadian counterpart, on the sidelines of the G7 summit in Kananaskis, Alberta, this year. It was followed by both countries reinstating high commissioners in each other’s capitals.
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Syllabus: GS2/IR
Context
- The Canadian Foreign Minister paid a state visit to India where both sides agreed to restore relations, including relaunching the energy dialogue.
About
- The process of normalisation of diplomatic relations began when PM Modi met his Canadian counterpart, on the sidelines of the G7 summit in Kananaskis, Alberta, this year.
- It was followed by both countries reinstating high commissioners in each other’s capitals.
Major Highlights of the Visit
- Both sides agreed to begin at the earliest, their ministerial-level discussions on:
- bilateral trade and investments,
- re-establishing the Canada-India Ministerial Energy Dialogue for cooperation on renewables and critical minerals,
- relaunching the Joint Science and Technology Cooperation Committee,
- and encouraging Canadian AI companies and researchers to participate in India’s AI Impact Summit in 2026.
- India and Canada have also begun preliminary talks on SMR (Small Modular Technology) nuclear-powered reactors and other cooperation in civil nuclear energy.
- Both sides agreed on starting talks on the Comprehensive Economic Partnership Agreement (CEPA) again.
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, India was Canada’s seventh-largest goods and services trading partner, with two-way trade coming to $33.9 billion while Canada’s merchandise exports to India totalled $5.3 billion.
- Civil Nuclear Cooperation: Nuclear Cooperation Agreement (NCA) was 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 were 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.
Areas of Differences
- Khalistani Extremism: India has repeatedly raised concerns over pro-Khalistan activities, including hate speech, violence, and attacks on Indian diplomatic missions.
- Trade and Investment Uncertainty: Ongoing talks on the Early Progress Trade Agreement (EPTA) were paused in 2023 amid political tensions.
- Despite strong business interest, political issues slow down economic engagement.
- Differing Geopolitical Outlooks: India seeks stronger Indo-Pacific cooperation, but Canada’s approach is often seen as inconsistent and influenced by domestic politics.
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 chill in bilateral relations now appears to be in the past, the future of the relationship depends on how both countries manage these differences while leveraging shared interests.
Source: TH