This marks the second instance this month where Canadian officials have spoken about India in a positive manner.

India-Canada Relations: There are growing expectations for improvement in India-Canada relations as diplomatic warmth slowly returns, signaling a positive shift. With Canadian Prime Minister Justin Trudeau's term ending next year and his prospects of re-election appearing slim, Canadian officials, particularly from the Foreign Affairs and Trade Ministries, have felt encouraged to begin mending ties with India.

Last week, Canadian Deputy Foreign Minister David Morrison, appearing before a parliamentary commission investigating allegations of foreign interference, stated that "India is one country" in the eyes of Canada, adding, "We respect India's territorial integrity." Morrison also acknowledged, "Supporters of the Khalistani homeland are present in various countries, including Canada. India objects to their activities, and while certain actions are illegal under Indian law, they do not fall under Canadian legal restrictions. Nevertheless, we have clarified this situation to India on multiple occasions." Morrison emphasized that Canada and India have been long-standing partners, and Canada's policies are adapting to India's growing global influence.

This marks the second instance this month where Canadian officials have spoken about India in a positive manner. Canada's National Security Adviser, Jody Thomas, previously referred to some activities of Khalistani supporters in Canada as "malicious," but noted that since these actions fall within the legal bounds of freedom of expression, Canadian authorities are limited in their ability to act. However, Thomas expressed that the Canadian government understands Indian concerns and is working to ensure that nothing harms the traditional relationship between the two nations.

Though no Canadian official has directly referenced Justin Trudeau's controversial September 2023 statement—where he alleged the "possible involvement of Indian agents" in the killing of Khalistani leader Hardeep Singh Nijjar—there is a tacit acknowledgment that Trudeau could have handled the matter more diplomatically. India had vehemently rejected Trudeau's claims, demanding evidence, which Canada has yet to provide. Although four Punjabi youths are now on trial in connection with the Nijjar case, no claims of Indian involvement have been substantiated. Canadian investigators maintain that the investigation is ongoing, and any new findings will be made public.

Despite the diplomatic rift over the Khalistani issue, it is encouraging that bilateral trade between the two countries remains unaffected. In 2023, trade between India and Canada amounted to approximately $9 billion, with the balance favoring India in a 3:2 ratio. Additionally, Canadian pension funds and financial institutions continue to be significant investors in India's corporate sector.

Canadian business leaders, in particular, have been displeased with Justin Trudeau's adversarial stance toward India. Today, this same business community is playing a pivotal role in steering the relationship back on course. There is hope that, despite the tensions related to the Khalistani issue, India-Canada relations will soon stabilize. This will be especially beneficial for the Indian diaspora in Canada, particularly the Punjabi community, whose welfare is closely tied to the health of bilateral ties.