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The Hindu Editorial Analysis- 25th October 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

The Hindu Editorial Analysis- 25th October 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC

An India-Canada bonding that is in danger of snapping

Why in News?

The current state of Canada-India diplomatic relations has evoked a mountain of uncertainty. The questions are: what uncertainty and for whom? India is a prime origin country of immigrants to Canada, who have settled there as naturalised citizens (most holding the Overseas Citizenship of India, a life-time Indian visa or semi-dual-citizenship) as well as permanent residents (PRs) who range from investors, industrialists and business people, the highly skilled “knowledge professionals” to low- and medium-skilled “service workers”.

Background of India Canada Relations

  • India and Canada have a longstanding bilateral relationship founded on shared democratic values, multicultural societies, and robust people-to-people connections.
  • During the Indian freedom struggle, many Indian migrants settled in Canada, and the "Swadesh Sevak Home" in Vancouver played a crucial role in mobilizing Indians against British rule.
  • Diplomatic relations between India and Canada were established in 1947, following India's independence, and both countries exhibit federal structures inspired by the Canadian constitution.
  • Initially, the focus of their relationship centered on cooperation in areas like development assistance and education, with India being the largest recipient of Canadian foreign aid during the Cold War.
  • Tensions emerged when India conducted nuclear tests, and relations suffered a setback when Sikh terrorists bombed Air India Flight 182 in 1985.
  • In the 1990s, as India underwent economic liberalization, the relationship diversified into new areas, including trade and investment.
  • A significant milestone occurred in April 2015 when the Indian Prime Minister's visit to Canada elevated bilateral ties to a strategic partnership.
  • In recent years, both countries have been actively cooperating across various dimensions.

Pillars of India Canada Relations

  • Political Relations:
    • India and Canada share a strategic partnership with Ministerial Dialogues on foreign policy, trade, finance, and energy.
    • Various agreements have been signed, including the Air Services Agreement, Extradition Treaty, Nuclear Cooperation Agreement, and Social Security Agreement.
  • Commercial Relations:
    • Bilateral trade is valued at approximately $12 billion in 2023, favoring India, although it represents only a small portion of Canada's global trade.
    • India exports pharmaceuticals, gems and jewellery, textiles, and machinery to Canada, while Canada exports pulses, timber, pulp and paper, and mining products to India.
    • Canada ranks as the 18th largest foreign investor in India, with investments of around $3,306 million from April 2000 to March 2023.
    • Comprehensive Economic Partnership Agreement (CEPA) negotiations are ongoing, covering trade in goods, services, investment, and trade facilitation.
  • Cultural Relations:
    • The Indian diaspora in Canada is significant, with over 1.3 million Canadians of Indian origin.
    • Canada designates April as Sikh Heritage Month in recognition of its diverse Indian community.
    • The number of Indians granted permanent residency in Canada increased by 260% from 2013 to 2022.
    • Many Indian immigrants come to Canada as professionals, skilled laborers, and entrepreneurs, showing interest in Canada's Startup Visa (SUV) program.
    • The Canadian parliament includes over 15 Indian-origin MPs, some holding ministry portfolios, and the New Democratic Party has Indian-origin leadership.
    • India is the top source country for international students in Canada since 2018.
  • Education:
    • The Shastri Indo-Canadian Institute (SICI) promotes academic relations in education.
    • The Department of Earth Science and Polar Canada collaborates on Cold Climate (Arctic) Studies.
    • Tourism:
    • Canada is the fourth largest source of tourists for India, accounting for 5.3% of Foreign Tourist Arrivals in 2021.
  • Technological Cooperation:
    • Indo-Canadian cooperation focuses on promoting industrial research and development.
    • The IC-IMPACTS initiative fosters research collaborations between Canada and India.
    • ISRO and CSA have signed agreements for space exploration and satellite tracking, launching nanosatellites with the University of Toronto.
    • A Nuclear Cooperation Agreement was signed, leading to a Joint Committee on Civil Nuclear Cooperation, and a safety agreement was reached between India's AERB and Canada's CNSC.

Challenges to India-Canada Relations

  • Trade Barriers:
    • Contentious Trade Issues: India and Canada have faced challenges related to trade barriers, including tariffs and non-tariff restrictions, impeding bilateral trade growth.
    • Paused Free Trade Agreement Negotiations: Recent negotiations for a Free Trade Agreement between India and Canada have been halted.
    • Concerns Over Agricultural Imports: Canada is worried about India's restrictions on agricultural imports, particularly in the pulse crops sector, like lentils and chickpeas.
  • Human Rights Concerns:
    • Canada's Vocal Stance: Canada has been outspoken about human rights issues in India, especially the treatment of religious minorities, such as Sikhs and Muslims.
    • Indian Concerns: India has raised concerns about attacks on Hindu minorities and religious sites, leading to diplomatic tensions over differing human rights approaches.
  • Visa and Immigration Issues:
    • Canada's Policy Changes: Alterations in Canadian visa and immigration policies have raised concerns in India, resulting in India suspending visas for Canadians, escalating tensions.
  • Geopolitical Disputes:
    • Divergent Viewpoints: India and Canada have conflicting stances and interests on geopolitical matters like Afghanistan, Iran, China, Pakistan, and terrorism.
    • Strained Relations: Disagreements on topics such as the political situation in Kashmir and the Khalistan movement in Canada have strained diplomatic relations, even leading to a lack of bilateral discussions during the G20 meeting in New Delhi.
  • Perceived Lack of Focus on India:
    • Prioritization of Other Regions: The current Canadian government has seemed to prioritize regions like Asia and the Pacific over its relationship with India, which could be a concern for India, especially given the growing geopolitical significance of the Indo-Pacific region.

Measures Needed to Strengthen India-Canada Relations

  • Diplomatic Engagement: India and Canada must employ a multifaceted approach to enhance their relationship, focusing on political trust-building through high-level dialogues and Track II diplomacy while collaborating on shared concerns.
  • Addressing Khalistan Issue: To effectively tackle the Khalistan problem, India should adjust its diplomatic tactics. Both nations need to engage in open and inclusive dialogues to address Khalistani separatism.
  • Deepening Economic Cooperation: Both countries should reduce trade barriers, tariffs, and non-tariff obstacles. They should restart trade negotiations for a Comprehensive Economic Partnership Agreement (CEPA) and increase trade and investment.
  • Investment Opportunities: Infrastructure and transportation are potential areas for collaboration and investment. India's 'smart cities' initiative offers Canadian businesses opportunities for involvement.
  • Strategic Cooperation: Strengthening cooperation in critical strategic domains, including counterterrorism frameworks, countering China in the Indo-Pacific, and advocating for freedom of navigation and rule-based order.
  • Environmental Collaboration: India and Canada can work together on renewable energy projects and technology transfer, aligning with their commitments to sustainability and climate change mitigation.
  • Promoting People-to-People Ties: Both countries should promote cultural exchanges, educational programs, and other initiatives to enhance mutual understanding and respect among their populations.
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