Canada Election 2025: What Mark Carney And Liberals' Victory Means For Ties With India?

Last Updated:April 29, 2025, 12:26 IST

Carney has previously said rebuilding ties with India was a priority for his government, as Canada faces an uncertain relationship with both the US and China.

Mark Carney's victory signals a shift in India-Canada ties. (Reuters)

Canada Election 2025: In a stunning turnaround, Canadian Prime Minister Mark Carney led the Liberal Party to a rare fourth mandate in the House of Commons, which looked like an unthinkable feat after widespread popularity against the party during the tenure of his predecessor Justin Trudeau.

Most polls have projected a Liberal government, although it remains to be seen whether it would be a majority or a minority government. Mark Carney’s victory could signal a major shift in the tense relations between India and Canada following Trudeau’s controversial allegations over the killing of Khalistani terrorist Hardeep Singh Nijjar.

Carney, 60, has had a lucrative career as an investment banker before serving as the central bank governor in both Canada and Britain. campaign focused on his ability to provide economic stability and defend Canadian sovereignty. He had replaced Justin Trudeau, whose faced widespread backlash over soaring costs of living.

What Did Carney Say On India-Canada Ties?

During his campaign, Carney said rebuilding ties with India was a priority for his government, describing it as an “incredibly important relationship". He also said Canadians have deep personal, economic and strategic ties with India.

“There are strains on that relationship that we didn’t cause, to be clear, but there is a path forward to address those with mutual respect and to build out," he was quoted as saying by Hindustan Times during a campaign event on the weekend, but did not mention the Nijjar controversy directly. He said Canada and India can play a big role in building an open, shared economy.

Last month, while speaking to reporters in Alberta, Carney said, “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’m Prime Minister, I look forward to the opportunity to build that."

The change of tone towards India comes as Canada grapples with US President Donald Trump’s threats of annexation and steep tariffs. Carney has more than once emphasised that the US is no longer a reliable ally and the Canadians have to rely on each other.

India-Canada Relations Under Trudeau

Relations between India and Canada over the decades have been strained over the Khalistan issue. However, they nosedived in 2023 after then-PM Trudeau publicly accused India of being involved in the killing of Nijjar in Surrey, British Columbia. India described the allegations as “absurd" and “politically motivated".

Tensions escalated further as Canada expelled six Indian diplomats, followed by a tit-for-tat move by India. Both nations expelled top envoys, froze trade negotiations and suspended official visits. India has accused Canada of tolerating extremism on its soil and failing to take action to curb attacks against Indian diplomats.

However, Canada’s increasingly uncertain alliance with the United States and a strained relationship with China has forced a review of its ties with India, which is one of the country’s largest sources of immigrants and skilled professionals.

Mark Carney, who has been vocal in his criticism of President Trump, reinforced his firm stance against the US during his victory speech. He declared that he would never allow Ottawa to be “part of America in any way."

Ottawa, Canada

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