Why is it in the news?

• India has decided to withdraw its High Commissioner and other diplomats from Canada amid rising tensions between the two nations.

India-Canada Bilateral Relations

Foundation of Ties:

• India-Canada relations are built on shared democratic values, cultural diversity, economic engagement, and strong people-to-people connections.

High-Level Exchanges:

• Prime Minister Modi’s visit to Canada in 2015 resulted in multiple agreements.

1) In 2018, Prime Minister Trudeau visited India, signing six agreements across various sectors.

2) Both leaders discussed vaccine collaboration and evacuation efforts during the COVID-19 pandemic.

3) The PMs met at the G-7 meeting in 2022 to strengthen bilateral ties.

4) Trudeau participated in the G20 Summit in India in 2023, where he met Modi.

Bilateral Mechanisms:

• The two countries have established dialogues on trade, energy, and foreign affairs, with recent consultations taking place in 2023.

Security Cooperation:

• A Joint Working Group for counter-terrorism was established in 1997 to enhance security collaboration.

Civil Nuclear Cooperation:

• An agreement for peaceful nuclear energy use was signed in 2010, overseen by a Joint Committee.

Energy Cooperation:

• Since 2018, a Ministerial-level Energy Dialogue has been expanded to include renewable energy initiatives.

Space Collaboration:

• MoUs for satellite tracking and astronomy have been signed, with ISRO launching Canadian satellites.

Economic Relations:

• Bilateral trade reached USD 9.36 billion in 2023, with significant contributions from service trade.
• Canadian investments in India exceed CAD 75 billion, with over 600 Canadian companies operating in the country.
• Exports to Canada: Pharmaceuticals, electronics, jewellery, seafood, and engineering goods.
• Imports from Canada: Minerals, pulses, potash, and chemicals.

Science and Technology Cooperation:

• Multiple MoUs have been signed to promote research and technological collaboration.

Education:

• Indian students form the largest foreign demographic in Canada, with around 427,000 enrolled in various institutions.

People-to-People Relations:

• Canada has a sizable Indian diaspora of approximately 1.8 million, contributing significantly to its economy and society.
• Cultural exchanges include film co-production agreements and joint initiatives between Canada Post and India Post. The ICCR has established chairs at several Canadian universities to foster cultural cooperation.

Diplomatic Row

• In September 2023, Canadian PM Trudeau accused India of involvement in the murder of Hardeep Singh Nijjar, a claim India has categorically denied.
• In response, India advised its nationals in Canada to exercise caution and suspended visa services for Canadians. Visa services for select categories resumed in October, with e-visas in November 2023.
• The Ministry of External Affairs condemned the “unsubstantiated allegations,” suggesting they aim to distract from the presence of Khalistani extremists in Canada.
• Concerns about the safety of Indian diplomats were raised, asserting that actions by the Trudeau Government contribute to an environment of extremism and violence.

Future Outlook

• The Government of India has rejected these allegations as politically motivated, viewing them as part of the Trudeau Government’s agenda centred around vote bank politics.
• India reserves the right to take further actions in response to perceived support for extremism and violence against it from the Canadian Government.