- September 19, 2023
Diplomatic Strain: Canada Expels Indian Diplomat Amid Allegations of Government Links to Assassination

India-Canada relations have reached a critical low point following Canada’s expulsion of a senior Indian diplomat on Monday. The move comes as Canada investigates allegations, described as credible by Prime Minister Justin Trudeau, that the Indian government may have had connections to the assassination of Hardeep Singh Nijjar, a Khalistani terrorist. Nijjar was fatally shot on June 18 outside a Sikh cultural center in Surrey, British Columbia.
In a statement made in Parliament, Prime Minister Trudeau disclosed that Canadian intelligence agencies have been actively looking into these allegations surrounding Nijjar’s assassination. The incident has heightened tensions between the two nations, sparking concerns about the future of India-Canada trade relations.
Canada holds the position of the 18th most significant foreign contributor to India’s economy, having channeled approximately $3.3 billion into India from April 2000 to March 2023. This Canadian investment constitutes approximately 0.5 percent of the total foreign direct investment (FDI) influx in India during this period. Moreover, in 2022, India ranked as Canada’s ninth-largest trade partner.
Notably, the services and infrastructure sectors played a substantial role, accounting for 40.63 percent of the total FDI inflow from Canada into India. These economic ties have been an essential component of the bilateral relationship between the two countries.
As diplomatic tensions escalate, there is growing uncertainty about the impact on trade and economic cooperation between India and Canada. Observers are closely watching to see how both nations navigate these challenging circumstances and whether efforts will be made to ease tensions and maintain the economic ties that have been vital for both countries.