Mark Carney, the new leader of Canada’s ruling Liberal Party and soon-to-be Prime Minister, is focused on “rebuilding” strained relations with India, which soured under his predecessor, Justin Trudeau. The 59-year-old former central banker is also eager to diversify Canada’s trade ties with New Delhi.
Carney secured 85.9 percent of the vote in the Liberal Party leadership race, emerging as the frontrunner to replace Trudeau.
Prior to his election, Carney addressed the issue of US tariffs on Canada during a media interaction in Calgary, Alberta, stating that Canada would aim to diversify its trade relationships with like-minded nations. “There are opportunities to rebuild the relationship with India,” he said. “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.”
One of the advantages for India with Carney at the helm is his extensive knowledge of Canada’s economic ties with India. Having previously served as Governor of both the Bank of Canada and the Bank of England, Carney also chaired the board of Brookfield Asset Management, which has invested in India’s real estate, renewable energy, and infrastructure sectors. He stepped down from this role in January.
India is likely to welcome any efforts by Ottawa to mend bilateral relations, particularly in light of US President Donald Trump’s tariff threats that have impacted both countries. Given that Canada is one of the top destinations for Indian migrants, New Delhi may also raise concerns with the new leadership over Ottawa’s restrictions on immigration and tightening of visa norms.
India-Canada Relations
India-Canada relations hit a new low after Trudeau’s September 2023 claim that Indians were involved in the killing of Khalistani terrorist Hardeep Singh Nijjar on June 18 of that year. New Delhi strongly rejected the allegations, labeling them “baseless.” Following this, both countries expelled each other’s top diplomats.
Ottawa also paused the Early Progress Trade Agreement, which was set to be finalized in 2023.
