India’s independence from British colonial rule in 1947 initiated its diplomatic relationship with Canada, which recognized India’s sovereignty and provided substantial economic aid. During the Cold War, India’s non-aligned stance created tensions with Canada, a NATO member, yet bilateral trade and cultural exchanges persisted. Prime Minister Pierre Trudeau’s visit to India in 1971 was pivotal in strengthening ties. The economic liberalization of India in 1991 opened new avenues for Canadian businesses, leading to a significant increase in bilateral trade, with Canada becoming one of India’s top trade partners. Prime Minister Jean Chrétien’s visit in 1996 further solidified relations, and cooperation has since expanded into areas such as education, energy, defense, and security.

The Shastri Indo-Canadian Institute has been instrumental in fostering academic cooperation, contributing to India being the second-largest source of international students in Canada, exceeding 100,000. Canada has played a notable role in India’s nuclear program; however, tensions escalated in 2023 when Canada accused India of involvement in the assassination of Hardeep Singh Nijjar, a Sikh separatist leader. The Khalistan movement has remained contentious, with Pakistan allegedly supporting separatists and India accusing it of backing terrorism. Despite these challenges, bilateral trade reached $8.4 billion in 2020, with key Canadian exports including pulses, lumber, and machinery.

Indian corporations like Tata Consultancy Services and Infosys have established a strong presence in Canada. Canadian investments in India total approximately $2 billion, while Indian investments in Canada are around $1.5 billion. The Canada-India Free Trade Agreement negotiations began in 2010 to enhance collaboration across various sectors such as trade and energy. The India-Canada Trade Agreement of 1956 laid the groundwork for trade relations, while subsequent agreements like the Foreign Investment Promotion and Protection Agreement (2012) and the Nuclear Cooperation Agreement (2009) have further strengthened ties. Additionally, climate change and environmental cooperation are emerging as vital areas for collaboration.

Canada actively supports India’s bid for permanent membership on the UN Security Council. Cooperation at the provincial level between Indian states and Canadian provinces is increasing through sister province relationships that promote cultural and economic exchanges. Focus areas include innovation and entrepreneurship development programs. Despite recent challenges, India-Canada relations have evolved significantly since 1947. With shared values and growing economic ties, both nations are well-positioned to strengthen their partnership and address global challenges collaboratively as they celebrate over 75 years of diplomatic relations. The future appears promising for India-Canada relations as they continue to flourish amidst mutual interests.