Canada appears to be softening its position on its 2024 allegations under former Prime Minister Justin Trudeau, who had claimed of “credible allegations potentially linking” India to the killing of Khalistani terrorist Hardeep Singh Nijjar — allegations that New Delhi firmly rejected.
Also Read: Canada may need India now more than ever as trade risks mount
A commission report released in Canada later said that “no definitive link” to a “foreign state” has been “proven” in the killing of Khalistani terrorist Hardeep Singh Nijjar.
At the heart of this reset is the India leg of the visit, scheduled from February 27 to March 2, which forms the centrepiece of a wider Indo-Pacific tour. From there, the itinerary moves on to Australia and Japan, underlining India’s growing weight in Canada’s regional calculus.
According to a recent Bloomberg report, Dinesh Patnaik, India’s High Commissioner to Ottawa, described the agenda as “immense,” potentially encompassing formal cooperation agreements in research, artificial intelligence, quantum computing, and education.
Among the deals expected is an expansion of Canada’s uranium shipments to India, Patnaik said. India is also exploring purchases of Canadian heavy crude and other energy products, alongside potential investments in infrastructure such as pipelines and terminals.“This is a total reset of the relationship,” Patnaik told Bloomberg. “We are not school children with a single issue — you took my bag, you took my lunch box. You are the largest democracy in size, we are the largest in population. And so it’s inevitable and natural for us to work together, and so this visit will put the stamp on that.”
The visit also signals a significant turn from the strained relations of just a year ago. In 2024, Canada expelled six Indian officials, alleging involvement in campaigns of violence and intimidation against Canadian citizens.
Since Carney succeeded Trudeau, efforts have been made to mend ties.
Carney and Prime Minister Narendra Modi agreed in November last year to resume talks toward a free-trade deal, with Patnaik indicating the agreement could be formalised within a year.
“Both economies have evolved, and momentum is now building,” he said, pointing to India’s recent pact with the European Union as evidence of a changing landscape.
A fresh push on trade and investment
As earlier reported by ET earlier, India and Canada are targeting an ambitious $70-billion annual trade by 2030, and Carney’s visit is expected to be a cornerstone in achieving that goal.
The Comprehensive Economic Partnership Agreement (CEPA), whose negotiations began in 2010, stalled multiple times but is now being relaunched. It is expected to cover trade in goods and services, investment, agriculture, and digital commerce.
In 2024, bilateral merchandise trade reached $13.3 billion, with Canada exporting $5.3 billion in vegetables, mineral fuels, oils, and wood pulp, while imports from India totalled $8 billion, largely pharmaceutical products, machinery, and electronics.
Services trade also grew significantly, with Canada exporting $15.2 billion worth of services to India, an 18.2% increase from 2023.
Patnaik highlighted that under Carney, Canada is taking a more global approach.
Also Read: Trump likely gets his friend PM Modi a new union with Canada
“He’s realised that Canada has to behave like a global power, which is that a global power has multidimensional relationships with all countries,” Patnaik said. He added that Carney’s speech at the Davos Summit on “variable geometry” alliances resonated with India’s long-standing foreign policy perspective.
Diplomatic reset amid past tensions
Ahead of the visit, Ottawa has indicated a clear shift in its position on earlier allegations regarding India’s involvement in crimes on Canadian soil, effectively walking back a narrative that had strained ties between the two countries.
A senior Canadian official, speaking to the Toronto Star, acknowledged the progress in engagement, stating, “We have a very robust diplomatic engagement, including between national security advisers, and I think we can say we’re confident that that activity is not continuing.”
The remarks are being seen as a tacit recognition that earlier concerns have not held ground in ongoing assessments.
The tensions had escalated following the June 2023 killing of Khalistani terrorist Hardeep Singh Nijjar in British Columbia, after which then Prime Minister Justin Trudeau alleged there was “credible” evidence linking India to the murder. The claim, however, was strongly rejected as baseless by New Delhi.
The episode triggered a diplomatic standoff, including the expulsion of officials on both sides.
Subsequent assertions by the Royal Canadian Mounted Police linking Indian agents to criminal activities further complicated the relationship, though these claims remained unproven and contested by India.
As reported by Toronto Star, a Canadian official told reporters that the government would not be pursuing this level of diplomatic engagement if such concerns persisted.
Notably, the visit’s itinerary avoids Punjab, often at the centre of diaspora-linked political sensitivities, and instead focuses on economic and institutional engagement. Carney is expected to meet leaders from business and academia, while also reviving the Canada-India CEO Forum — signalling a deliberate pivot toward pragmatic cooperation.
The India leg of the trip forms part of a broader Indo-Pacific outreach, with Carney scheduled to travel onward to Australia and Japan for meetings with Prime Ministers Anthony Albanese and Sanae Takaichi.
Also Read: Canadian Prime Minister Mark Carney to depart for India today
Strengthening security and diplomatic channels
Patnaik noted that the countries are also enhancing cooperation on security and transnational crime.
Speaking to the Toronto Star, he said, “This was discussed recently when NSA Ajit Doval visited Canada, and he had very extensive discussions with his counterpart, NSA Nathalie Drouin, as well as the Minister for Public Safety. And I think what they have put together is a wonderful action plan to take forward the security cooperation between both sides to address all issues — whether it’s fentanyl smuggling, whether it is transnational organised crime, violent extremism, illegal immigration fraud, cybercrime, or cybersecurity.”
The Indian High Commissioner emphasised the importance of liaison officers and real-time cooperation, adding, “We are looking at cooperation in all sectors. Both sides have understood that if we have to make Canada safe and India safe, we need to discuss and talk about all the issues, have liaison officers with each other, and have cooperation which is on time and online.”
While some segments of Canada’s Sikh community remain cautious, the sustained diplomatic engagement and improved security channels have laid the groundwork for a cautious reset.
Carney’s visit will test whether both countries can move past a challenging chapter in their relationship while balancing domestic sensitivities and ongoing legal proceedings.