Mark Carney Signals Diplomatic Shift in India-Canada Relations

Ottawa:
Mark Carney, the newly elected leader of Canada’s ruling Liberal Party and the country’s next Prime Minister, has expressed his intent to “rebuild” the strained relationship between India and Canada, which deteriorated under Justin Trudeau’s leadership. The 59-year-old former central banker also aims to diversify Ottawa’s trade relations with New Delhi.

Carney secured a decisive victory in the Liberal Party leadership race, winning 85.9% of the votes, making him the clear successor to Trudeau as Canada’s top leader.

Before his election, during a media interaction in Calgary, Alberta, Carney addressed concerns about US tariffs on Canada. He emphasized the need for diversifying trade partnerships with like-minded countries and pointed to India as a key partner.

“There needs to be a shared sense of values around that commercial relationship, and if I become Prime Minister, I look forward to the opportunity to build that,” Carney stated.

A Strategic Advantage for India

Carney’s leadership could benefit India, given his extensive knowledge of Ottawa’s economic ties with New Delhi. He has previously served as the head of both the Bank of Canada and the Bank of England. Additionally, he led the board of Brookfield Asset Management, which has significant investments in India’s real estate, renewable energy, and infrastructure sectors. He stepped down from the position in January.

Any effort by Ottawa to improve diplomatic ties is expected to be well-received by New Delhi, particularly at a time when US President Donald Trump’s tariff policies are affecting both countries. With Canada being one of the top destinations for Indian immigrants, India may also raise concerns about Canada’s restrictive immigration and visa policies with the new government.

Background: India-Canada Tensions

Relations between India and Canada hit an all-time low in 2023 when Trudeau accused India of involvement in the killing of Khalistani terrorist Hardeep Singh Nijjar in June that year. New Delhi strongly denied the allegations, calling them “baseless”.

Following the diplomatic fallout, both countries expelled each other’s top diplomats, and Ottawa halted negotiations on the Early Progress Trade Agreement (EPTA), which was set to be finalized in 2023.

With Mark Carney now at the helm, a shift in Canada’s diplomatic and economic approach toward India could signal a potential thaw in relations.