Opinion With a new PM in Canada, a chance to mend ties with India

When Justin Trudeau resigned as Prime Minister of Canada in January amid plummeting approval ratings, many considered the Liberal Party dead and buried ahead of general elections in that country. His replacement, Mark Carney, an unelected former central banker, faced the formidable task of rescuing a flailing economy and reviving a fractured party. Then came Donald Trump. As the US President began his second term, Canadian political discourse pivoted towards national pride in response to Trump’s provocations, which included a suggestion to annex Canada as the 51st American state and a wave of new tariffs. These developments rallied Canadians and gave Carney a platform. Riding a wave of anti-Trump sentiment, he has led the Liberals to a surprising, albeit narrow, electoral victory.

Carney may have emerged as the face of the Liberal Party’s resurrection, but his challenges are far from over. He must now confront serious economic headwinds and navigate an increasingly unpredictable global landscape shaped by Canada’s southern neighbour. For India, a significant aspect of the election was the downfall of Jagmeet Singh, leader of the New Democratic Party (NDP), who lost the parliamentary seat he had held since 2019. The NDP supported Trudeau’s minority government from 2021 to 2024, but this time failed to meet the 12-seat threshold required for official party status. With both Singh and Trudeau now relegated to a back seat, Carney’s election offers a potential reset in India-Canada relations, which have been strained for one-and-a-half years after Trudeau’s unsubstantiated allegations against India over the killing of Khalistani separatist Hardeep Singh Nijjar.

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Nearly two million people of Indian origin live in Canada, and over four lakh Indian students currently study there. Beyond strong people-to-people ties, key sectors of collaboration include pharmaceuticals, agri-tech, energy and climate change mitigation. Notably, trade between the two countries has remained largely unaffected by the diplomatic fallout. Canada has identified India as a critical regional partner in its Indo-Pacific Strategy, citing a shared interest in countering China’s expanding influence. Carney’s election, therefore, is an opportunity for renewed cooperation — provided Canada is willing to address India’s legitimate security concerns on the Khalistan issue. He has already signalled his intent to “rebuild” ties with India, calling the relationship “incredibly important”. Whether his government can go beyond the diplomatic gridlock of the Trudeau era and forge a meaningful alliance remains to be seen.