With Mark Carney taking the helm as Canada’s new Prime Minister, an overdue opportunity has arrived to reset and reimagine Canada-India relations. The recent invitation of Prime Minister Narendra Modi to the G7 Summit in Kananaskis is not just symbolic—it signals a potential thaw in the diplomatic chill that has hampered meaningful progress between two democracies with massive potential for collaboration.
Canada and India are natural partners—linked by democratic values, strong people-to-people ties, and complementary economic strengths. Yet, recent tensions, bureaucratic inertia, and political missteps have strained the relationship. It is now imperative for both nations to act decisively to rebuild trust and leverage their partnership to address shared challenges in trade, education, innovation, and strategic security.
Trade and Economic Synergies Waiting to be Realized: Despite the setbacks, the fundamentals of economic cooperation remain strong. Canadian pension funds have invested billions in Indian infrastructure, technology, and energy sectors. India, one of the world’s fastest-growing major economies, offers a vast consumer market and a booming startup ecosystem. In turn, Canadian companies and institutions—especially in fintech, clean energy, agritech, AI and pulses—stand to gain significantly from greater access to Indian markets.
But business cannot flourish without political will and institutional support. Business Councils, Diaspora Chapters, Chambers of Commerce, and the hundreds of other Indo-Canadian bilateral bodies have been conspicuously quiet during recent diplomatic rifts. That needs to change. Business leaders must take the initiative to reframe the relationship beyond political cycles. A strategic economic partnership agreement or a sector-specific free trade framework could signal serious intent from both sides.
Higher Education and Innovation: A Two-Way Street: India is the largest source of international students in Canada. But over the past year, visa delays, opaque processing timelines, and diplomatic tensions have disrupted thousands of student journeys. With growing concerns over affordability and safety in the United States, Canada is more important than ever as a destination of choice for Indian students seeking quality education and post-graduate opportunities.
This benefits from the flow of talent is not one sided. Canada’s innovation ecosystem—from Waterloo’s research corridors to Montreal’s AI hubs—has deeply benefited from Indian-origin researchers, scientists, and entrepreneurs. Collaborative R&D, joint degrees, and innovation incubators must become institutionalized pathways for mutual growth. Indian students are also a huge source of revenue for Canadian universities. A fast-tracked visa regime for students, researchers, and startup founders is not a luxury—it’s a strategic necessity for both countries.
Canadian universities must also take advantage of India’s New Education Policy (NEP) which allows for opening of physical campuses in India. This new route for Canadian universities could mitigate the economic and political headwinds affecting the higher education sector in Canada. Another front where Canada lags is in the establishment of joint or dual degree programs, especially in the Executive Education domain. Nonetheless, one of the bright and rare areas of partnership in this has been the University of Toronto- IIT Bombay educational partnership.
A Strategic Imperative in the Indo-Pacific: Improving Canada-India relations isn’t just about economics or education. It’s about national security and strategic alignment. Canada’s IndoPacific strategy cannot be credible without a robust partnership with India—a regional powerhouse with growing influence. As the world seeks to diversify away from Chinese supply chains, Canada and India must co-create secure, reliable channels for critical minerals, pharmaceuticals, and green technologies. India’s bilateral partnerships are expanding and both countries seek alternatives to China-dominated supply routes. Canada must act now to be part of this diversification strategy. Joint task forces on supply chain resilience, defense interoperability, and cybersecurity could help deepen trust and create strategic alignment.
The Diaspora Dividend: The over 1.4 million strong Indian diaspora in Canada is a living bridge, not a wedge. It embodies the aspirations, talents, and values of both countries. Instead of being caught in geopolitical crossfire, this community should be empowered to lead in diplomacy, entrepreneurship, and cultural exchange. People-to-people ties can no longer be sidelined as soft diplomacy—they are the bedrock of a deeper partnership.
Toward a Forward-looking Framework: If Canada wants to signal a new foreign policy direction, strengthening ties with India would be a wise and strategic move. A renewed roadmap for bilateral relations—emphasizing trade, student mobility, R&D collaboration, and strategic cooperation—must be prioritized.
Mark Carney has built his career on navigating complex global systems. Now, as Prime Minister, he has the chance to steer one of the most promising but under-leveraged relationships in Canada’s foreign policy. For both Canada and India, the moment to act is now.
Rajesh Mehta is an International Affairs expert working on areas like Market Entry, Innovation & Public Policy & Suchit Ahuja is Associate Professor, Business Technology Management at Concordia University – John Molson School of Business.
