India and Canada are at loggerheads, with both countries acting tit-for-tat in expelling of diplomats. Tension has crept in between India and Canada with Canadian Prime Minister Justin Trudeau's accusations which states India was involved in the murder of Khalistani terrorist Hardeep Singh Nijjar in June 2023 which has caused a stand-off over diplomatic ties between both countries. Prime Minister Justin Trudeau on Monday, accused the Indian government of been involved in "criminal activity" on Canadian soil. The new claims reinforce an earlier statement from Trudeau that "agents of the Indian government" were behind Nijjar's murder. He has passed on this information to the United States and other Five Eyes intelligence allies.
India has outrightly dismissed all accusations of being involved in Nijjar's killing and labeled the allegations as "absurd" and "motivated." Although the Canadian government has failed to provide any tangible evidence that would have proven the allegations. The rising diplomatic tension between India and Canada took a testy turn on Monday as New Delhi expelled six Canadian diplomats. The ministry of external affairs released a list of the Canadian diplomats who have been asked to leave the country by or before 11:59 PM on Saturday, October 19, 2024. New Delhi kicked out acting high commissioner Stewart Ross Wheeler, deputy high commissioner Patrick Hebert, first secretaries Marie Catherine Joly, Ian Ross David Trites, Adam James Chuipka, and Paula Orjuela.
Effect of the Crisis on Trade and Economic Relations
The diplomatic row has overshadowed the trade dialogue between the two nations, especially when it comes to the free trade agreement (FTA) negotiations. Canadian investments play a significant role in India’s economy, with Canadian pension funds, asset management companies, and financial firms contributing over $3.31 billion between 2020-2023. India also receives a large amount of remittances from Canada, as many Indian professionals and students live there. In 2023, Canada ranked among the top sources of global remittances to India. Despite the political tension, trade between the two countries has remained stable, growing slightly from $8.3 billion to $8.4 billion. However, experts warn that if diplomatic issues continue, it could have a negative impact on economic relations in the long run.
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