India and Canada’s diplomatic relations have reached a new low, with India recently withdrawing its High Commissioner from Canada and expelling six Canadian diplomats. This escalation follows Canada’s decision to name Indian diplomats as “persons of interest” in its investigation into the June 2023 killing of Hardeep Singh Nijjar, a Canadian citizen and pro-Khalistani leader. Canada has accused India of being involved in this assassination, allegations that New Delhi strongly denies, calling them “baseless” and politically motivated.
India has long expressed concerns about Canada’s tolerance of Khalistani separatist activities, which it views as a threat to its sovereignty. In response, Canada emphasizes that its investigation is based on credible evidence, though it has not yet disclosed this publicly. The diplomatic rift has now deepened, with both nations expelling diplomats and ceasing cooperation on diplomatic fronts.
India-Canada Economic Relations:
Despite the current diplomatic tensions between India and Canada, economic ties remain largely resilient. The bilateral trade between the two nations reached $8.16 billion in the fiscal year 2022-23, with a balance of exports and imports that includes various critical sectors.
- India’s Largest Exports to Canada: Pharmaceuticals, gems and jewelry, textiles, and machinery are among the top goods exported from India. These sectors contribute significantly to India’s trade with Canada, with pharmaceutical companies and IT giants like TCS and Infosys having a notable presence in the Canadian market
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- Canada’s Largest Exports to India: Canada primarily exports agricultural products such as pulses, timber, and fertilizers to India. Energy-related products like coal and paper pulp also play a significant role in Canada’s exports. Canadian pension funds have further strengthened ties through investments in India’s infrastructure and technology sectors.
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