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UPSC Issue at a Glance is an initiative of UPSC Essentials to focus your prelims and mains exam preparation on an issue that has been in the news. Every Thursday, cover a new topic in Q&A format and don’t miss MCQs towards the end of the article. This week’s topic is the India-Canada Diplomatic Row. Let’s get started!
The sharp escalation of the diplomatic row between India and Canada, a first-of-its-kind situation in India’s diplomatic relations with the West, has raised concerns about potential ripple effects in a range of areas including trade and people-to-people ties.
UPSC Syllabus:
Preliminary Examination: Current events of national and international importance
Mains Examination: GS-II: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
Other areas of relevance: UPSC Aspirants will find it useful in Essays, and Current affairs for their Personality tests.
What will you learn from this article? |
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The bilateral ties between India and Canada are long-standing and significant. Canada is home to a high percentage of Sikhs. However, the two countries’ bilateral relations have been affected by various issues, such as Khalistani separatism and Canada’s position on human rights in India. These issues have led to increased tensions and have impacted diplomatic interactions.
Canada’s allegation about India’s suspected involvement in the killing of Hardeep Singh Nijjar
The relations between the two countries saw some bitterness last year following Canadian Prime Minister Justin Trudeau’s allegation about India’s suspected involvement in the killing of Khalistani separatist and designated terrorist Hardeep Singh Nijjar in his country. India denied the allegation as “absurd” and “motivated”, the ties between the two countries have suffered a setback since then.
On September 21, India suspended visa services in Canada, including e-visa services. This came a day after it issued a travel advisory for Indian nationals travelling to Canada, as well as a caution for the Indian community in Canada, saying they could be “targeted”.
Recently, the diplomatic tension between India and Canada escalated on Monday (October 14), when India ordered the expulsion of six Canadian diplomats while also announcing its decision to withdraw the Indian High Commissioner to Canada and “other targeted diplomats,” citing security concerns after Ottawa identified them as “persons of interest” in its investigation into the killing of Khalistan separatist Hardeep Singh Nijjar.
Canada’s approach to Khalistani separatism
One of the causes of tension in India-Canada bilateral relations is Canada’s approach towards Khalistani separatism. India has consistently maintained that the main issue is Canada allowing pro-Khalistani elements to operate from Canadian soil with impunity. There also have been instances of pro-Khalistani elements threatening to harm Indian diplomats.
“The big issue for India is the safe haven that Canada has provided to separatist Khalistani groups, and what New Delhi sees as the Liberal Party’s pandering to these groups for votes. Estimates suggest there are 20-25 constituencies where these votes are crucial — and that explains the Trudeau government’s soft-pedalling on India’s concerns.”
What we have seen to our regret has been the direction of Canadian politics where separatists, extremists forces, many of whom openly advocate violence have been given political space in that country,” External Affairs Minister S Jaishankar said.
| What is the Khalistan movement? |
| The Khalistan movement is a fight for a separate, sovereign Sikh state in present day Punjab (both India and Pakistan). Over the years, it has survived in various forms, in various places and amongst different populations.
The movement was crushed in India following Operation Blue Star (1984) and Operation Black Thunder (1986 and 1988), but it continues to evoke sympathy and support among sections of the Sikh population, especially in the Sikh diaspora in countries such as Canada, the UK, and Australia. |
Some other challenges have also overshadowed India-Canada bilateral relations. For example, a low point also came in bilateral relations when, after the nuclear tests in 1998, Canada, an advocate of nuclear non-proliferation, recalled its high commissioner to India and heavily criticised India. The rift between the two nations also became apparent as early as 1948 when Canada supported a plebiscite in Kashmir.
Points to Ponder:
— What kind of anti-India activities have been seen in Canada?
— What were Operation Blue Star and Operation Black Thunder?
The deepening acrimony in India-Canada bilateral ties could not only affect the bilateral relations but also harm India’s global reputation. The potential consequences of the escalating dispute are:
Impact on Economic Relations
The trade and investment linkages between India and Canada form an integral component of the multi-faceted partnership between the two countries. In this context, the escalating tension between India and Canada has raised concerns about its potential impact on bilateral economic relations. This could affect Canadian pension fund investments worth $75 billion in India, the fate of paused negotiations for a proposed trade agreement, and the inflow of remittances into India.
Trade ties with Canada |
|
| India’s exports to Canada | India’s imports from Canada |
| Major exported items from India to Canada include pharmaceutical products; followed by nuclear reactors, boilers, and parts, electrical machinery , and articles of iron and steel. | Major imports from Canada during include petroleum products, edible vegetables, fertilizers, pearls, precious metals, and stones, pulp and wastepaper, and electrical machinery and equipment. |
Ravi Dutta Mishra , Sukalp Sharma write—
In 2022, India was Canada’s ninth-largest merchandise trading partner in the Indo-Pacific region, the 13th-largest merchandise trading partner globally and the 14th-largest destination for merchandise exports. Major exported items from India to Canada include pharmaceutical products (USD 274.05 million); followed by nuclear reactors, boilers, and parts (USD 195.46 million), electrical machinery (USD 160.68 million), and articles of iron and steel (USD 156.03 million).
“The diplomatic tensions have already impacted negotiations with Canada for a modern FTA, which could have meant not only better export opportunities for Indian garments, leather, and machinery products in Canada but also greater collaboration in the booming services sector in both countries. However, the escalation in tension may well mean that the deal may no longer be on the table.”
| Do you know? |
| As of September 2023, according to PTI, Canada was ranked as the 17th largest foreign investor in India, making cumulative investments amounting to USD 3.6 billion since April 2000. Canadian investments constitute approximately 0.56% of the total foreign direct investment (FDI) inflow into India. |
However, it has also been said that in the backdrop of the present diplomatic row, there is nothing much to worry about regarding bilateral trade relations. As a report by think tank Global Trade Research Initiative (GTRI) pointed out despite these significant political frictions, the on-ground impact on trade between India and Canada has been minimal. This is largely because trade happens at the private sector level, and neither India nor Canada has introduced regulations that restrict the flow of goods or services.
“For now, the resilience of trade between India and Canada highlights an important lesson — diplomatic tensions, while damaging, do not always spell disaster for economic ties. But as this dispute drags on, both nations will need to carefully manage their actions to avoid a full-blown economic fallout,” GTRI said.
| Remittances from Canada |
| India is the largest recipient of remittances from abroad, due to the sizeable presence of the Indian migrant workforce globally. In 2023, India received an estimated $125 billion in remittances, with Canada ranking among the top 10 sources, according to the World Bank. According to the Ministry of Finance, Canada contributed 0.6 per cent of the total inward remittances in 2021-22. |
Geopolitical implications
The diplomatic standoff also has geopolitical implications for India. If the allegations are proven true, India stands to damage its G20 reputation. The diplomatic crisis also extends to countries which share ties with both India and Canada.
Canada is a part of the G7 grouping and shares the table with the US, UK, Germany, France, Italy, and Japan. It also shares intelligence with the Five Eyes grouping — with the US, UK, Australia, and New Zealand. All these countries are also close strategic partners of choice for India. India has the Quad partnership with the US, Australia, and Japan, and strong and growing bilateral ties with each of them. The diplomatic standoff has put these countries in a spot.
Points to Ponder:
— How will the increasing tension in India-Canada relations affect the Indian Diaspora?
— How is the Indo-Canadian tiff impacting Indian students in Canada?
India has had diplomatic standoffs earlier — with the United States on the Devyani Khobragade issue, with Italy on the Italian marines issue, with Norway on the child services issue, and with Denmark over the extradition of the Purulia arms drop accused. However the current situation is qualitatively different and much more serious because of the nature of the allegation that Canada has made. In this context, both countries must exchange high-level diplomatic dialogues, which can help align their positions on the issue and promote mutual understanding.
“Without India, Trudeau’s Indo-Pacific strategy is obsolete. What is perhaps fortuitous is that both countries share interests in defending the international order, balancing China’s rise and behaviour, cooperating on issues like climate change, global health, misuse of digital technologies, regulating artificial intelligence, and alleviating burdens imposed on developing countries. But dealing with these challenges requires a political compact that addresses how both countries view Canada’s Indian diaspora and mitigating its worst impulses, particularly those fanning separatist embers in India. Without this, Ottawa and Delhi’s great distance will be measured not just by geography but disposition.”
From Editorial “Trudeau has shown irresponsibility in accusing India. He must answer”
Delhi’s strong reaction to the unsubstantiated accusation is understandable. It must now work to ensure that Ottawa’s diplomatic offensive does not dent India’s growing ties with the Anglosphere and the West. Delhi must make its case, and ensure that its wider concerns are communicated, especially to the English-speaking world. But in the end, it is in both countries’ interest to arrest the slide, and work towards addressing issues in good faith.
Points to Ponder:
— What is the significance of Canada for India?
— What is the principle of reciprocity in international law
Prelims
(1) Consider the following statements with regard to the G7:
1. The G7 is a formal grouping of leading industrialised nations.
2. The European Union has been part of all working sessions of the G7 since the 1981 Ottawa Summit.
3. The Group of Eight was constituted in 1998 as Russia became a member of the grouping.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
(2) Consider the following countries:
1. United States
2. Australia
3. Canada
4. India
5. United Kingdom
How many of the above countries are part of Five Eyes Alliance?
(a) Only two
(b) Only three
(c) Only four
(d) All five
Mains
‘Indian diaspora has a decisive role to play in the politics and economy of America and European Countries’. Comment with examples. (UPSC CSE 2020)
| Prelims Answer Key |
| 1. (b) 2. (c) |
(Sources: India withdraws its Canada envoy, India-Canada ties, Jaishankar on Canada , Khalistan movement, India-Canada diplomatic ties in a tailspin, Canada needs to see India, not just the diaspora)
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