India and Canada have moved from a period of sharp diplomatic friction to what India's High Commissioner to Canada, Dinesh K. Patnaik, describes as an 'extremely friendly' phase, with security agencies, political leadership and business communities now actively engaged. The reset is being underscored by a landmark visit of Union Commerce and Industry Minister Piyush Goyal to Canada, accompanied by a delegation of more than 100 Indian business leaders — described by Patnaik as the 'biggest delegation ever' from India to that country.

A Visit That Signals a New Chapter

Patnaik, speaking ahead of Goyal's arrival, called the visit 'the beginning of a new phase' in bilateral ties. 'The very fact that this meeting is taking place is the success of the story,' he said. 'Even one year back one wouldn't have imagined an Indian minister coming with a hundred plus delegation to Canada.'

The delegation is scheduled to hold meetings with Canadian industry groups, pension funds, banks, logistics companies and diaspora leaders. The primary objective, according to the High Commissioner, is to 'ramp up the economic and commercial relationship very high' and give fresh momentum to the proposed Comprehensive Economic Partnership Agreement (CEPA).

Trade Targets and Economic Ambitions

Bilateral trade between India and Canada currently stands at approximately 32 billion Canadian dollars (nearly 25 billion US dollars). Both governments are aiming to more than double that figure, with Patnaik citing a target of around 50 billion US dollars by 2030 or 2031.

Key sectors identified for deeper cooperation include energy, critical minerals, fertilisers, AgriFood, artificial intelligence, quantum research and defence. Canada is also home to one of the world's largest Indian diaspora communities, making people-to-people ties a central pillar of the relationship.

Security Dialogue and Extremism

Patnaik said both governments had 'put aside the problems of the past' and restored cooperation across sectors, particularly on security. 'The national security advisors had come and gone. They have had discussions. The agencies are talking to each other. The police forces are talking, the investigating agencies are talking,' he said.

On the issue of pro-Khalistan extremist networks, the envoy said Canada had begun treating it as a domestic challenge. He credited the administration of Prime Minister Mark Carney with helping marginalise such elements. 'They're making money out of it. It became a thing, which is more of an economic activity than an ideological activity,' Patnaik said, citing 'gun running, drug smuggling, people trafficking, extortion' and organised crime.

Immigration: Reassurance for Indian Nationals

Patnaik acknowledged that recent Canadian immigration policy changes had affected many Indians, but offered reassurance. 'Indians need not worry,' he said. 'People here have a good opinion of them.' He attributed the disruptions to systemic misuse, saying Canada was working to 'get the benefit of good immigration without allowing the bad immigration to come in.'

Background: How Ties Unravelled and Recovered

India-Canada relations deteriorated sharply in 2023 after former Canadian Prime Minister Justin Trudeau alleged potential Indian government involvement in the killing of Khalistani separatist Hardeep Singh Nijjar in British Columbia. India rejected the allegations as 'absurd' and accused Ottawa of providing political space to extremist and anti-India elements. The diplomatic fallout included the expulsion of diplomats and a near-freeze on high-level engagement.

In recent months, both countries have moved to stabilise ties through diplomatic outreach and renewed security dialogue. Goyal's visit — the first by a senior Indian minister in years — is being seen as the clearest signal yet that the relationship has turned a corner.