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Mark Carney and the Liberal Party's victory in the Canadian federal elections has set in motion a potential reset of one of the country's most strained international relationships: with India. Mr Carney, a political newcomer, had recently said, "I'm most useful in a crisis," and his victory signals a possible improvement in the bilateral ties between New Delhi and Ottawa that were frayed significantly under former prime minister Justin Trudeau.
In his campaign, Mr Carney identified rebuilding ties with India as a priority.
"What Canada will be looking to do is to diversify our trading relationships with like-minded countries, and there are opportunities to rebuild the relationship with India. There needs to be a shared sense of values around that commercial relationship, and if I am Prime Minister, I look forward to the opportunity to build that," he had said.
Diplomatic Fallout
India-Canada relations reached their nadir in 2023 following allegations by the Trudeau government implicating "Indian agents" in the killing of Hardeep Singh Nijjar, a Canadian citizen and a Khalistani terrorist, outside a gurdwara in Surrey, British Columbia, in June 2023.
In October 2024, tensions escalated further when Canada expelled six Indian diplomats. India denied any involvement in Nijjar's killing and condemned the accusations as baseless. The fallout led both nations to expel top envoys, freeze trade negotiations, and suspend official visits.
New Delhi had long accused Ottawa of tolerating extremism in Canada's Sikh diaspora. Trudeau's government was seen by Indian officials as too accommodating of separatist rhetoric and too quick to condemn India publicly. Against this background, Carney's victory is being watched closely in both capitals.
Mark Carney, 60, has headed both the Bank of Canada and the Bank of England. His campaign called for national sovereignty and revamping Canada's foreign alliances in light of tariff threats from its closest trading partner, the United States.
Mr Carney described former US President Donald Trump as a threat to Canadian autonomy, famously declaring, "Donald Trump wants to break us so America can own us." In response, he pledged to diversify Canada's trade relationships, specifically naming India as a key partner.
Mr Carney has consistently stated that Canada needs commercial partnerships with shared democratic values, and that India, despite recent frictions, remains an essential partner.
"Different person, different policies, different approach to governing," he said," Mr Carney had told the Toronto Star in a February interview.
Prime Minister Narendra Modi joined other world leaders in congratulating Mr Carney today, adding that he looked forward to unlocking "greater opportunities" for the people of both countries.
"Congratulations @MarkJCarney on your election as the Prime Minister of Canada and to the Liberal Party on their victory. India and Canada are bound by shared democratic values, a steadfast commitment to the rule of law, and vibrant people-to-people ties. I look forward to working with you to strengthen our partnership and unlock greater opportunities for our people," wrote PM Modi on X.
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