India-Canada Relations

Context:

India has decided to recall its High Commissioner Sanjay Kumar Verma and other senior diplomats from Canada. Along with this, India has also expelled six Canadian diplomats. Thus the diplomatic relations between the two countries have reached a low level.

Recent developments:

• This development came after the Canadian government declared six Indian officials as 'Person of Interest' for their alleged role in the killing of Khalistani supporter Hardeep Singh Nijjar in British Columbia in June 2023.
• The Indian Ministry of External Affairs has termed Canada's allegations as 'baseless' and has sought evidence regarding their alleged role in Nijjar's murder. India alleges that the matter is related to the political challenges facing the Trudeau government on the domestic front in Canada.

India-Canada Bilateral Relations:

Bilateral Mechanisms:

The two sides have dialogue mechanisms such as Ministerial-Strategic, Trade and Energy Dialogue, Foreign Office Consultations, Joint Committee Meeting on Environment and other sector-specific Joint Working Groups. The India-Canada Foreign Office Consultations were held in Ottawa on April 11, 2023.

Security Cooperation:

• Cooperation on counter-terrorism issues is being carried out through the framework of the Joint Working Group on Counter-Terrorism established in 1997.
• Security cooperation has increased with the signing of the Framework for Cooperation to Combat Terrorism and Violent Extremism between India and Canada in February 2018.

Civil Nuclear Cooperation:

• The Agreement for ‘Cooperation on the Peaceful Uses of Atomic Energy’ with Canada was signed in June 2010 and came into force in September 2013.
  • A Joint Committee was formed to oversee the implementation of this agreement.
• During the visit of Indian Prime Minister Narendra Modi to Canada in April 2015, the Department of Atomic Energy and M/s Cameco Inc. signed an agreement for supply of uranium ore concentrate to India in the years 2015-2020.
• In September 2015, the Atomic Energy Regulatory Board of India signed an agreement with the Canadian Nuclear Safety Commission to exchange experiences in nuclear safety and regulatory issues.
• During the visit of Prime Minister Justin Trudeau in February 2018, a Memorandum of Understanding was signed between the Department of Atomic Energy, India and the Department of Natural Resources, Canada on cooperation in the field of science, technology and innovation.

Energy Cooperation:

• Ministerial level energy dialogue was held between India and Canada in September 2016.
  • During the visit of Canadian Prime Minister to India in February 2018, the scope of the energy dialogue was expanded to include electricity, energy efficiency and renewable energy.
•  Secretary, Ministry of Petroleum and Natural Gas of India participated in the World Petroleum Congress-2023 held in Calgary, Canada from September 17-20, 2023.

Space Cooperation:

• ISRO and Canadian Space Agency signed two MoUs in the field of exploration and use of outer space in October 1996 and March 2003.
  • Under this, cooperation related to satellite tracking and space astronomy was approved.
• ISRO's commercial arm Antrix has launched several nanosatellites from Canada.
• ISRO also launched Canada's first LEO satellite from its 100th satellite PSLV launched in January 2018.

Economic Relations:

• Trade and investment relations between India and Canada are an integral part of the multifaceted partnership between the two countries.
• Goods and Services Trade:
  • Bilateral trade in goods was US$ 10.50 billion in the year 2022.
    • India's exports were US$ 6.40 billion and imports were US$ 4.10 billion.
  • Bilateral trade in services was US$ 8.74 billion during the same year.
  • Bilateral trade in goods declined in the year 2023 (January-October) and fell to US$ 7.65 billion.
  • Major items exported from India to Canada: Gems, jewellery and precious stones, pharmaceutical products, ready-made garments, mechanical equipment, organic chemicals, light engineering goods, iron and steel items etc.
  • Major items imported from Canada to India: Pulses, newsprint, wood pulp, asbestos, potash, iron scrap, copper, minerals and industrial chemicals etc. 
• Investments: Canadian pension funds have cumulatively invested over US$75 billion in India. Indian companies in Canada are active in the IT, software, steel, natural resources and banking sectors.
• Agriculture: A bilateral Memorandum of Understanding on agricultural cooperation was signed in 2009. Under this, a Joint Working Group was formed. The 5th round of the Joint Working Group on Agriculture was held in November 2017.

Cooperation in the field of science and technology:

• In 2012, a Memorandum of Understanding was signed between the two countries on cooperation in Information & Communication Technology and Electronics (ICTE).
• In February 2018, a joint declaration for cooperation in the field of ICTE was signed during Prime Minister Trudeau's visit to India.
  • The Secretary of the Department of Science and Technology of India participated in the 7th India-Canada Joint Science and Technology Cooperation Committee held in Ottawa.
• During this, a Memorandum of Understanding was signed between the Indian Department of Science and Technology (DST) and the National Research Council of Canada on cooperation in industrial research, development and innovation.
• The Department of Earth Sciences of India and Polar Canada have launched a program for the exchange of knowledge and scientific research on cold climate (Arctic) studies.
• Under the India-Canada-IMPACTS program, the Department of Biotechnology implements joint research projects in healthcare, agro-biotechnology and waste management.
• Under the ‘Mission Innovation’ program, India is collaborating with Canada in various activities in the areas of sustainable biofuels.

COVID-19 Vaccine Collaboration:

• In February 2021, on the request of the Government of Canada for COVID-19 vaccine, India approved the export of 2 million Covishield vaccines to Canada under a commercial agreement between the Serum Institute of India and Verity Pharmaceuticals of Canada.
  • On March 3, 2021, the first consignment of 500,000 doses of the vaccine arrived in Canada from India.
• To provide COVID-19 assistance to India, the Government of Canada donated C$10 million to assist the Indian Red Cross Society in the form of oxygen plants, oxygen concentrators, ventilators, etc.

Cultural cooperation

• Indian Diaspora: About 1.8 million expatriate and another 1 million non-resident Indians reside in Canada. The main concentration of Indian immigrants is in the Greater Toronto Area, Greater Vancouver Area, Montreal (Quebec), Calgary (Alberta), Ottawa (Ontario) and Winnipeg (Manitoba).
• Education:
  • Education is a major area of ​​mutual interest between the two countries. About 230,000 Indian students are studying in Canada.
  • The Memorandum of Understanding on Higher Education signed with Canada in 2010 was renewed in February 2018. A joint working group has also been formed under this.
  • Shastri Indo-Canadian Institute is a bi-national organization that promotes education and cultural cooperation between India and Canada through a consortium of 120 universities and higher education and research institutions.
  • ICCR Chairs have been established at McGill, Alberta, SFU, Calgary and Guelph Universities in Canada.
• Consular Affairs
  • Recognizing the dynamic role of people-to-people relations in the India-Canada partnership, the two sides agreed to address consular issues in 2018.
    • This has led to the establishment of the India-Canada Consular Dialogue.
  • The two countries signed a Mutual Legal Assistance Treaty in 1994 and an Extradition Treaty in 1987.

Multilateral Partnership

• Canada and India work together in multilateral forums to develop effective responses to current global challenges. These include:
  • International Civil Aviation Organization (ICAO)
  • Pacific Alliance
  • United Nations Organization (UNO)
  • United Nations Educational, Scientific and Cultural Organization (UNESCO)
  • World Trade Organization (WTO)

Deterioration in relations:

• On June 18, 2023, unknown assailants killed Gurdeep Singh Nijjar in Canada.
• After attending the G-20 summit in New Delhi, Canadian Prime Minister Justin Trudeau said in the House of Commons that 'agents of the Indian government' were involved in Nijjar's murder. This led to a deterioration in bilateral relations.
• After this, India stopped visa facilities for Canadian citizens and several diplomats of both the countries were recalled.

Impact of the current issue on the relations between the two countries

Impact on India:

• The growing tension between India and Canada may hinder the sharing of intelligence between India and Western countries.
  • Canada is a member of the Five Eyes Alliance which also includes the US, the United Kingdom, Australia and New Zealand.
  • In such a situation, Canada may try to spoil the relations of other countries of this group with India.
• It is possible that Canada may reduce investment in India or not encourage Indian students to come here.
• Apart from this, there is no possibility of any special impact as both the countries are not really included in each other's strategic equation.
  • India's relations with other Western powers, especially countries with common strategic interests in the Indo-Pacific, are based on its own diplomatic qualities.

Impact on Canada:

• India is currently paying attractive dividends on Canada's pension fund investments. In such a situation, Canada may suffer economic loss if it withdraws its investment from India.
• Most members of the Indian diaspora in Canada also have the right to vote. In such a situation, the policy of appeasement can be adopted by the current Canadian government to polarize the Sikh vote bank.
  

Way forward:

• Currently, diplomatic relations between India and Canada are at their lowest level. According to experts, there is little possibility of improvement in relations in the near future because the decisions taken by the current political leadership of Canada are inspired by domestic politics.
• According to diplomatic experts, if there is a change of power in the elections to be held in Canada in the year 2025, then some steps can be taken by the new government to improve relations.
• To improve relations between the two countries, dialogue should continue at the diplomatic level. Canada should not accuse India of killing Nijjar without authentic evidence.
• Apart from this, the Canadian government needs to take strict steps to curb Sikh separatist demonstrations or activities in its country.