INDIA CANADA RELATIONS

INDIA CANADA RELATIONS

Background of India Canada Relations

• • The bilateral relationship between India and Canada has been based on close interpersonal ties, two diverse, multireligious, and multiethnic societies, and shared democratic values for a long time. 
  • In recent years, both countries have sought to strengthen their bilateral cooperation in a number of areas that are advantageous to both. 
  • During the freedom movement, a sizable immigrant population from India settled in Canada.
  •  The “Swadesh Sevak Home” in Vancouver was crucial in uniting the Indians against British rule. 
  • In 1947, India and Canada established diplomatic relations after gaining their independence.
  •  Many aspects of India’s constitution, such as the centralization of residuary powers and a powerful central government, were influenced by the constitution of Canada.
  •  The federal structures of the two nations are therefore comparable. 
  • When India and Canada first started dating, they focused on cooperating in areas like development assistance and education.
  •  During the Cold War, Canada gave the greatest amount of aid abroad to India.
  • But relations between India and Canada were at a crossroads when India conducted nuclear tests. 
  • It fell again in 1985 when Sikh terrorists destroyed Air India Flight 182.
  • The relationship began to expand into new areas like trade and investment with India’s economic liberalization in the 1990s. 
  • Strategic partnership: Bilateral ties were advanced to a strategic partnership in 2015 when the Indian Prime Minister paid a visit to Canada in April. 
  • This was a pivotal moment in the relationship. 
  • In recent years, both countries have worked together in a variety of capacities
    

Pillars of India Canada Relations

• • India and Canada have a broad strategic alliance that touches on a variety of topics, including politics and culture.
  • Political Relations: The strategic partnership between Canada and India at the ministerial level is based on ministerial dialogues on energy, finance, trade and investment, and foreign policy. 
  • India and Canada have ratified several accords, including the Nuclear Cooperation Agreement, the Air Services Agreement, the Extradition Treaty, and the Social Security Agreement.
    Commercial Relations
  • Trade bilaterally: Canada prioritizes India, ranking it as its tenth-largest trading partner in 2022. 
  •  The balance of trade favors India; bilateral trade is predicted to reach $12 billion in 2023, but this represents only 1.95% of Canada’s overall global trade with India, thus it falls short of its potential.
  • While India imports timber, mining products, and pulses from Canada, Canada exports pulp and paper, machinery, medicines, jewelry, textiles, and mining products to India. 
  • Foreign direct investment (FDI): With approximately $3,306 million invested between April 2000 and March 2023, Canada is ranked as the 18th-largest foreign investor in India by Invest India. 
  •  Agreement: A Comprehensive Economic Partnership Agreement (CEPA), which will cover investment, trade facilitation, trade in goods and services, among other issues, is currently undergoing technical negotiations between the parties.

Cultural Relations

• • Diaspora: Canada and India are involved in a number of initiatives pertaining to cultural and educational exchange. 
  • In Canada, there are over 1.3 million individuals of Indian heritage. This is a crucial facet of India’s diplomatic strategy using soft power. 
  • Over 4% of people live in Canada, home to a sizable Indian diaspora, and are classified as Persons of Indian Origin (PIOs) or Non-Resident Indians (NRIs).
  • In observance of this, the Canadian government proclaimed April to be Sikh Heritage Month in 2019. 
  • Between 2013 and 2022, the number of Indians granted permanent residency increased by 260%, indicating a stronger bond between the two countries. 
  • A considerable number of Indian immigrants arrived in Canada as skilled laborers, professionals, semi-professionals, and business owners.
  •  Over time, Indian business owners have become more and more interested in Canada’s Startup Visa (SUV) program. 
  •  More than 15 Members of the Canadian parliament are of Indian descent, and they currently hold cabinet ministry portfolios.
  • One of the biggest parties in Canada, the New Democratic Party, is led by an individual of Indian descent. 
  • Education: Since 2018, India has been Canada’s top source nation for international students. 

• • The Shastri Indo-Canadian Institute (SICI) was established in 1968 with the goal of advancing educational academic ties. 
  • A program of scientific research and knowledge exchange on Cold Climate (Arctic) Studies has been initiated by Polar Canada and the Department of Earth Science.
  •  Travel: Canada is India’s fourth-largest visitor destination. 5.3% (80,437) of all foreign tourist arrivals (FTAs) in India in 2021 came from Canada.
    

Technological Cooperation

Research and development: 

• • In order to create new intellectual property, processes, prototypes, or products, industrial R&D with potential for application has been the main focus of Indo-Canadian science and technology cooperation. 
  • IC-IMPACTS is a Canada-India Research Center of Excellence whose goal is to foster research partnerships between the two countries.

Space:

• • Two Implementation Arrangements covering satellite tracking and space astronomy, as well as Memorandums of Understanding (MOUs) for collaboration in the field of space exploration and utilization, have been signed by ISRO and the Canadian Space Agency (CSA). 
  •  In partnership with the Institute of Aerospace Studies (UTIAS) at the University of Toronto, ISRO’s commercial division, ANTRIX, has launched nine nanosatellites.

Nuclear energy: 

• • In June 2010, Canada and the United States signed the Nuclear Cooperation Agreement (NCA), leading to the establishment of the Joint Committee on Civil Nuclear Cooperation.
  •  In order to share experiences in nuclear safety and regulatory matters, the Canadian Nuclear Safety Commission (CNSC) and India’s Atomic Energy Regulatory Board (AERB) inked an agreement in 2015.
    
    

Challenges to India-Canada Relations

Although there have been initiatives to improve ties between India and Canada, a number of difficulties have also surfaced. The following are a few of the main obstacles to India-Canada relations:

Trade barriers: 

• • India and Canada have a tense relationship when it comes to trade. The expansion of bilateral trade has been hampered by trade restrictions and barriers that both countries have had to deal with, including tariffs and non-tariff barriers. 
  • Trade talks on the Free Trade Agreement between Canada and India were recently put on hold once more.
  • India’s restrictions on agricultural imports, particularly with regard to pulse crops (e.g., chickpeas and lentils), have alarmed Canada. 

Human rights issues: 

• • While India has voiced concerns about attacks on Hindu minorities and religious sites, Canada has been outspoken about human rights concerns in India, especially with regard to the treatment of religious minorities like Sikhs and Muslims. 
  • These issues have caused diplomatic tensions and divergent views on human rights.

Visa and immigration issues: 

• • India is concerned about changes to Canada’s immigration and visa laws. The tensions have increased as a result of India’s recent suspension of Canadian visas.

Geopolitical issues:

• • India and Canada have different interests and points of view on matters like Afghanistan, Iran, China, Pakistan, and terrorism. 
  •  Tense diplomatic relations have resulted from disagreements over matters like the political climate in Kashmir and the Khalistan movement in Canada. 
  • There were no bilateral talks between Canada and India at the G20 summit in New Delhi. 
  • Perceived lack of focus on India: 
  • The relationship between Canada and India seemed to be subordinated in favour of other regions, like Asia and the Pacific. India might have been concerned about this, particularly in light of the Indo-Pacific region’s growing geopolitical significance.

Khalistan Issue

• • India and Canada have been at odds over the Khalistani separatist movement for a long time.
  • The movement is in favor of Khalistan, an independent Sikh state that is kept apart from India.

The Growing Impact of Khalistani Advocacy in Canada: 

• • The vocal Sikh diaspora in Canada has been promoting the cause of Khalistan, which has led to the Khalistani issue becoming more well-known in Canada in recent years.
  •  The growth of social media and the dissemination of Khalistani propaganda online are partially to blame for this. 
  • India has voiced worries about the influence of supporters of Khalistan living in Canada and has chastised the country for not acting more forcefully against them.
  • In September 2023, tensions between Canada and India increased due to the Khalistani dispute once more. India angrily denied the Canadian Prime Minister’s accusation that it was complicit in the murder of a Sikh separatist. 
  • G20 Summit: Canada and India only had a meeting off-site at the G20 Summit in India in 2023. India met one-on-one with numerous world leaders during the G20 summit, but not with Canada.
  • Trade negotiations are on hold once more because of worries about pro-Khalistan activities. This is the case with the India-Canada Free Trade Agreement talks. 
  • Removal of ambassadors: Senior diplomats were expelled by Canada and India. Furthermore, Canada has recently been told to reduce the number of its diplomats in India. 
  •  Visa issue: India has stopped processing visas for Canadians who want to visit India, both inside India and through third-party countries, due to ludicrous accusations and ongoing diplomatic tensions.
  • The US and the Five Eyes: The United States, Australia, Canada, New Zealand, and the United Kingdom make up the “Five Eyes” intelligence sharing network.
  •  The US ambassador to Canada claimed in a recent interview that “shared intelligence among Five Eyes partners” assisted Canada in reaching the conclusions reached by the prime minister of Canada. 
  • From India’s point of view, the ongoing dispute has made diplomatic ties between India and Canada even worse. According to India, these baseless accusations are an attempt to deflect attention from extremists and terrorists from Khalistani who have taken up residence in Canada and are still a threat to India’s sovereignty and territorial integrity.

Measures Needed to Strengthen India-Canada Relations

• • India and Canada continue to be significant partners in spite of the difficulties. 
  • In the current dynamic global landscape, strengthening India-Canada relations calls for a multifaceted strategy. 
  • Diplomatic engagement: To get past the issues that have strained their relations recently, India and Canada must both establish political confidence and trust.
  • Regular high-level communication and engagement via Track II diplomacy, along with enhanced collaboration on matters of shared interest, are two ways to accomplish this. 
  • Handling the Khalistan issue: India needs to modify its diplomatic strategy in order to handle the Khalistan issue effectively. 
  • Addressing the issue of Khalistani separatism should involve open and inclusive dialogue between India and Canada. 
  • Strengthen economic cooperation: Both nations ought to make an effort to lower tariffs, trade restrictions, and non-tariff obstacles. In order to enhance trade and investment flows and negotiate a Comprehensive Economic Partnership Agreement (CEPA) between the two nations, trade negotiations between India and Canada must be resumed.
  • Investment: Cooperation and funding could also be directed toward the transportation and infrastructure sectors. Opportunities exist for Canadian businesses in India’s ambitious “smart cities” initiative.
  • Strategic cooperation: Encouraging cooperation in critical strategic domains like countering China in the Indo-Pacific region, establishing a framework against terrorism, and prioritizing rule-based order and freedom of navigation are all necessary.
  • Environmental cooperation: Given their shared commitment to sustainability and the fight against climate change, Canada and India can work together on renewable energy projects and technology transfer.
  • Foster people-to-people relations: Cultural exchanges, educational initiatives, and other measures that would support and deepen mutual respect and understanding between the peoples of India and Canada should be implemented by both countries.
  • India, the most populous nation in the world, continues to be a vital ally of the West, boasting the second-largest military and the fifth-largest economy. 
  • The governments of India and Canada must be dedicated to and work together to strengthen their relationship. Through the pursuit of mutually beneficial opportunities and the resolution of shared challenges, both nations can strengthen their partnership and promote stability and prosperity in the region and worldwide.