How the Souring India-Canada Relationship is Affecting the Global Economy

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India-Canada Relation

India and Canada have traditionally had close ties, dating back to the days of British colonialism. However, the relationship between the two countries has soured in recent years, due to a number of factors.

India-Canada Relationship

One of the main reasons for the souring relationship is the issue of Khalistan. Khalistan is a separatist movement that seeks to create an independent Sikh homeland in the Indian state of Punjab. Canada has a large Sikh diaspora, and some members of this diaspora are sympathetic to the Khalistan movement. India has accused Canada of harboring Khalistani extremists, and of turning a blind eye to their activities.

Another reason for the souring relationship is the issue of trade. India and Canada are currently negotiating a Comprehensive Economic Partnership Agreement (CEPA). However, the negotiations have stalled, due to a number of disagreements. India has accused Canada of being protectionist, and of refusing to open up its market to Indian goods and services.

Different categories of trade affected

The souring relationship between India and Canada has had a negative impact on trade between the two countries. In recent years, the growth of bilateral trade has slowed down. This has affected a number of different categories of trade, including:

Agricultural products:

Canada is a major exporter of agricultural products to India, such as pulses, lentils, and canola oil. However, the Indian government has recently imposed higher tariffs on these products, which has made them more expensive for Indian consumers.

Manufactured goods:

Canada also exports a number of manufactured goods to India, such as machinery, electronics, and chemicals. However, the Indian government has also imposed higher tariffs on these products, which has made them less competitive in the Indian market.


Canada is a major exporter of services to India, such as education, tourism, and financial services. However, the Indian government has also made it more difficult for Canadian companies to operate in the Indian market.

Conclusion and proposed solution

The souring relationship between India and Canada is a negative development for both countries, as well as for the global economy. It is important for the two countries to find a way to resolve their differences and rebuild their relationship.

One way to do this would be to resume the negotiations on the CEPA. A successful CEPA would boost trade and investment between the two countries, and it would also send a positive signal to the global economy.

Another way to improve the relationship would be for India and Canada to cooperate more closely on global issues, such as climate change and trade. By working together on these issues, the two countries can show that they are committed to building a better future for all.

In addition to the above, here are some other specific steps that India and Canada can take to improve their relationship:

Increase dialogue and communication:

The two countries need to engage in more regular and open dialogue, at all levels of government. This will help to build understanding and trust between the two sides.
Address each other’s concerns:

India and Canada need to be willing to address each other’s concerns in a respectful and constructive manner to mend India-Canada relationship. This includes India addressing Canada’s concerns about human rights and religious freedom in India, and Canada addressing India’s concerns about Khalistani extremism in Canada.

Promote people-to-people exchanges:

The two countries can also improve their relationship by promoting people-to-people exchanges. This could include student exchanges, cultural exchanges, and business exchanges.

By taking these steps, India-Canada relationship can start to rebuild and create a brighter future for both countries.


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Aishwarya Ganesh
Aishwarya Ganesh is a Instagram blogger and Social Media Strategist passionate in the field of Self Growth, Lifestyle and empowering the Indian Woman. She believes in the concept of "Beauty with a Purpose"