Editorial of the Day: Musings on the frictions in India-Canada ties

Context: The article is discussing the Indian response to a tableau displayed during a pro-Khalistani parade in Brampton, Canada. The tableau depicted a woman resembling India’s former Prime Minister, Indira Gandhi, who was shown bloodied with two soldiers pointing guns at her. The display was accompanied by text referencing the revenge for the attack on Shri Darbar Sahib and the phrase “Never forget 1984,” alluding to the assassination of Indira Gandhi in 1984. The article highlights India’s response to the incident where it expressed concerns about Canada providing space for separatists, extremists, and those advocating violence. It emphasized that such actions were detrimental to the relationship between the two countries. The Canadian High Commissioner to India openly condemned the event and displayed his support to uphold the dignity of India, regardless of political differences or controversial historical events.

Background

India-Canada bilateral ties are underpinned by shared values of democracy, pluralism, expanding economic engagement, regular high level interactions and long-standing people-to-people ties.

• Both the countries have long standing bilateral relationships based on the multi-cultural, multi-ethnic and multi-religious nature of two societies and strong people-to-people contacts.
• As Westminster style democracies, India and Canada share commonalities in Parliamentary structure and procedures.

Areas of Cooperation:

• Dialogue Mechanisms:  Both the countries pursue bilateral relations through the dialogue mechanisms such as:
  • Ministerial level- Strategic, Trade and Energy dialogues
  • Foreign Office Consultations
  • Joint Working Group (JWG) on Higher Education
  • Joint Committee Meeting on Civil Nuclear Cooperation
  • Joint Working Group on Counter Terrorism
  • Both the countries engage in Strategic Dialogue through their respective External Affairs Ministers
• Both the countries have established a Track 1.5 Dialogue involving experts, government officials and business leaders from both sides to explore the possibility of future cooperation.

Economic Relations

• More than 400 Canadian companies have a presence in India, and more than 1,000 companies are actively pursuing business in the Indian market.
• Indian companies in Canada are active in the field such as Information Technology, software, steel, natural resources and banking sectors.
• Canadian Pension Funds have invested around US$ 32.6 billion in India.
• Major items of India’s exports to Canada include gems, jewellery and precious stones, pharmaceutical products, ready-made garments, mechanical appliances, organic chemicals, light engineering goods, iron & steel articles, etc.
• India’s imports from Canada include pulses, roots & tubers, newsprint, wood pulp, asbestos, potash, iron scrap, copper, minerals and industrial chemicals, etc.
• India and Canada are discussing the Comprehensive Economic Partnership Agreement (CEPA) and Bilateral Investment Promotion and Partnership Agreement (BIPPA/FIPA).

Nuclear Cooperation

• A Nuclear Cooperation Agreement (NCA) with Canada was signed in June 2010 and came into force in September 2013.
• The Appropriate Arrangement (AA) for the NCA was signed in March 2013, under which a Joint Committee on Civil Nuclear Cooperation was constituted.
• In April 2015, Department of Atomic Energy (DAE)  signed an agreement for supply of uranium ore concentrate to India in 2015-2020.

Science and Technology

• Indo-Canadian Science and Technology cooperation has been primarily focused on promoting Industrial R&D which has potential for application through development of new IP, processes, prototypes or products.
• Department of Biotechnology under IC-IMPACTS program implements joint research projects in health care, agri-biotech and waste management.
• The Department of Earth Science and Polar Canada have started a programme for exchange of knowledge and scientific research on Cold Climate (Arctic) Studies.

Security and Defence

• India and Canada collaborate closely in international fora, particularly through the UN, Commonwealth and G-20.
• Defence Research and Development Organisation and York University, Canada, have signed a memorandum of understanding that emphasizes biological and chemical warfare and sensors.
• The security cooperation was further enhanced with the Framework for Cooperation between India and Canada on Countering Terrorism and Violent Extremism signed by the National Security Advisor of India and the National Security and Intelligence Advisor of Canada in 2018.
• India and Canada have signed a Mutual Legal Assistance Treaty in 1994 (operationalised in 1998) and Extradition Treaty in 1987.
• There is robust cooperation on counter terrorism issues particularly through the framework of the JWG on Counter Terrorism.

People-to-People

• Canada hosts one of the largest Indian diasporas in the world which account for more than 4% of its total population.
• The diaspora has done commendably well in every sector in Canada.
  • In the field of politics, in particular, the present House of Commons (total strength of 338) has 22 Members of Parliament of Indian-origin.

Education 

• Education is a key area of mutual interest.
• Recently India became the top source of foreign students studying in Canada.
• The Shastri Indo-Canadian Institute (SICI) is a unique bi-national organization fostering, since 1968, education and cultural cooperation and collaboration between India and Canada.
• As part of commemoration of the 550th Birth Anniversary of Guru Nanak Devji, it was decided by GOI to set up a Chair on Guru Nanak Devji in a Canadian University.

Space

• India and Canada are pursuing successful cooperative and commercial relations in the field of Space since the 1990s mainly on space science, earth observation, satellite launch services and ground support for space missions.
• ISRO and Canadian Space Agency (CSA) have signed two MOUs in the field of exploration and utilisation of outer space in October 1996 and March 2003.
• ANTRIX, the Commercial arm of ISRO, has launched several nano-satellites from Canada.
• ISRO in its 100th Satellite PSLV launched on 12 January 2018, also flew Canadian first LEO satellite, from Indian spaceport Sriharikota, Andhra Pradesh.

Energy

• Energy has been a primary area of focus of India-Canada bilateral relations considering that Canada is an ‘energy superpower’ with one of the world’s largest resources of uranium, natural gas, oil, coal, minerals and advanced technologies in hydropower, mining, renewable energy and nuclear energy.
• India Oil Corporation has a 10% participating interest in a Liquid Natural Gas project in British Columbia.

Development Cooperation

• In FY 2021-2022 Canada invested nearly $76 million to support 52 international assistance projects in India.
• Canada’s funding primarily focused on sustainable economic development, the treatment of infectious diseases, nutrition, and renewable energy projects in vulnerable communities.
• Canadian funding supports civil society partners active in India including the Micronutrient Initiative, the United Nations Development Program, the United Nations Population Fund and the Multilateral Fund for the Implementation of the Montreal Protocol on Substances that Deplete the Ozone Layer.
• Key multilateral organizations supported by Canada that are active in India include the Asian Infrastructure Investment Bank, the World Bank, the United Nations Population Fund, UNICEF, the Global Fund to Fight AIDS, TB, and Malaria, the Gavi Vaccine Alliance, and Nutrition International.
• International Development Research Centre (IDRC) has an active presence in India with projects focusing on:
• Links between climate change and migration;
  • Reduction of violence against vulnerable populations;
  • Women’s rights, security and access to justice;
  • Economic opportunities for Indian workers, especially women; and improving food security.

Decoding the Editorial

The article discusses the significance of the Indian Diaspora in Canada.

Current State of Engagement:

• The current situation of engagement between Canada and India is complex and involves both challenges and areas of cooperation.
• Bilateral ties have faced difficulties, particularly due to certain political issues and divergent perspectives on certain matters.
• However, despite these challenges, cooperation between Canada and India continues in various areas.
• One eye-catching example is the Cannabis medicine project, where there have been collaborations and engagements.
  • This project likely involves the exploration and development of medicinal applications of cannabis, and it indicates that there are areas where the two countries can find common ground and work together.

Beyond the Editorial

Challenges to India-Canada Relations

Khalistan Movement:

• The early Sikh immigrants to Canada sought to politically organise themselves, reacting to the anti-immigrant sentiments and discrimination they faced in the country.
• Social, economic and political developments in India that affected the interests of the Canadian Sikh community further fuelled their political drive.
• The declaration of Emergency in 1975, the rise of Sikh militancy in Punjab in the 1980s, Operation Blue Star in the Golden Temple (Amritsar) in 1983, and the 1984 riots that resulted in the deaths of almost 3,000 Sikhs.
• While the Khalistan movement does not enjoy much traction in India, it lives on amongst the Sikh diaspora in countries like Canada, the US and the UK.
• These kinds of activities by a section of the Canadian Sikh diaspora that have internalized the Khalistan sentiments have greatly dented the India–Canada relations.

Trade Issues:

• Structural hurdles such as complex labour laws, market protectionism, and bureaucratic regulations are roadblocks for Indo-Canadian relations.
• India is the world’s largest producer of pulses. Moreover, India has been receiving bumper crops in pulses in the last few years and is unwilling to import the staple food, to protect domestic farmers.
• Against such a backdrop, India’s initiative to increase duties by 50% of all imported peas without providing any advanced notice in 2018 was unwelcomed by the Canadian Government.
• No progress has been made in bilateral agreements such as the Comprehensive Economic Partnership Agreement (CEPA) and Investment Promotion and Protection Agreements (BIPPA).

Way Forward

• Canada and India have longstanding bilateral relations built upon shared traditions of democracy, pluralism, and strong interpersonal connections, and their relations are moving on a positive trajectory. With the establishment of the Ministerial Dialogue on Trade and Investment, bilateral trade relations are expected to strengthen further in the coming times. The growing economy of India offers immense opportunities to the consumer population of Canada. The G-7 country Canada has an advanced and resource-rich economy which will be a good relationship for India to uphold.
• Energy is an area of emerging cooperation for the two countries. As per to the Oil Processing and Exporting Countries (OPEC), World Oil Outlook Report 2040, India’s oil demand will double by 2040.If there is growing pressure from the US to cut oil imports from Iran, Canada could be an alternative energy source for India.
• The infrastructure and transport sectors are vital areas of cooperation and investment. India’s ‘smart cities’ initiative provides immense opportunities for Canadian firms to undertake infrastructure projects in various Indian cities.

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