Canada & India Relations: G7 Summit, Recent Developments & More

India’s engagement with Canada continues to expand through diplomatic, economic, and cultural cooperation. Found in the North America / Americas, Canada contributes significantly to geopolitical stability and international security. India’s diplomatic ties with Canada began in 1947, opening doors to mutual growth and collaboration. India and Canada maintain a High Commissions in New Delhi and Ottawa, Consulates General, with embassies in each other’s capitals, ensuring seamless diplomatic engagement. 

India and Canada are turning a new page in their relationship, bringing fresh hope for stronger people-to-people and government ties. Prime Minister Modi’s visit to Canada for the 2025 G7 Summit opened the door to renewed dialogue after years of tension. With diplomatic channels reopening and a focus on trade, technology, and shared democratic values, both countries are signaling a desire to move forward. For the millions connected through family, culture, and business, this reset offers a promising future built on trust and collaboration.

• India and Canada collaborate in Trade, investment, energy, science & technology, education, agriculture such as defense, nuclear energy, trade, space technology, oil and gas, cybersecurity, culture, and education. 
• India and Canada have signed a series of agreements in fields like Air Transport (1982, 2011), DTAA (1996), S&T Cooperation (2005), Nuclear Cooperation (2010), Social Security (2012), Audiovisual Co-production (2014) to bolster mutual cooperation. 
• India and Canada maintain a trade volume of USD 816 billion (2022-23), illustrating their growing economic partnership. 
• India’s trade with Canada includes key exports like Pharmaceuticals, gems & jewellery, textiles, machinery, software, chemicals, which form a large share of trade flows. 
• India mainly imports Pulses, potash, coal, newsprint, aircraft, wood pulp from Canada as part of their regular and long-standing trade ties. 

India’s engagement with Canada in S&T collaboration, university partnerships, student mobility, research supports digital transformation and academic excellence. Focused on India & Canada Relations, this article explores Strategic Summits, Diaspora Remittances, and Import-Export Trends to assist candidates in enhancing their GS Paper 2 and PSIR notes. 

Canada & India Relations Establishment of Diplomatic Ties

The diplomatic journey between India and Canada began with Early ties, Commonwealth members, development cooperation. India and Canada have shared important diplomatic moments through visits like Multiple Prime Ministerial visits from both sides. 

• India and Canada have experienced tensions in the past, including Khalistani extremism concerns, recent diplomatic strains (2023-2024), which impacted diplomatic ties. 
• India–Canada relations can be traced through key stages, including Early cooperation, nuclear chill, renewed engagement, current tensions.
• PM Narendra Modi attended the G7 Summit in Kananaskis, Alberta, from June 16–17, 2025, after accepting an invitation from newly elected Canadian PM Mark Carney
• Modi and Mark Carney agreed to reappoint High Commissioners and fully restore diplomatic services, paving the way for visa services, business facilitation, and renewed diplomatic exchange 

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Strategic & Political Cooperation of India Canada Relations

Indias ties with Canada are of G7/G20 member, significant diaspora, trade and investment partner, often involving defense cooperation, economic collaboration, cultural exchanges, and shared global security objectives. 

• Security cooperation framework, training, limited joint exercises strengthens India’s security and fosters peace through military drills and strategic agreements with Canada. 
• India and Canada work together through Cooperation on counter-terrorism, intelligence sharing (currently strained), maintaining cooperation by sharing information and tracking terrorist threats. 
• Framework for cooperation in ICT and electronics promotes digital cooperation between India and Canada, enhancing mutual trust, cybersecurity, and technological progress. 
• UN, G20, Commonwealth, WTO, ARF enable India and Canada to cooperate on shared goals and tackle international challenges collectively. 
• Through their Nuclear cooperation, oil & gas, renewable energy, clean tech, India and Canada are collaborating on energy efficiency, fossil fuel alternatives, and grid modernization. 
• Both India and Canada are committed to strengthening ISRO-CSA collaboration, satellite launches, with a focus on joint research, technology transfer, and exploration initiatives. 
• India and Canada have forged a partnership in areas such as Air Transport Agreement, significant two-way tourism and travel to enhance people-to-people exchanges and travel opportunities. 
• DTAA in force since 1996 (amended) support mutual economic interests by promoting fiscal clarity between India and Canada.

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Trade and Economic Overview of India Canada Relations

• India and Canada have expanded their cooperative framework by signing agreements in areas such as Air Transport (1982, 2011), DTAA (1996), S&T Cooperation (2005), Nuclear Cooperation (2010), Social Security (2012), Audiovisual Co-production (2014). 
• The trade volume between India and Canada has reached USD 816 billion (2022-23), highlighting the strengthening of their economic ties. 
• Investment flows reflect Significant two-way investment, Canada major investor in India, backed by strategic collaborations and bilateral business projects. 
• Key platforms such as Ministerial Dialogue on Trade & Investment, Economic & Financial Dialogue are held regularly, either every year or two, to review and enhance bilateral trade and investment ties. 
• During the reported period, Canada exported goods worth USD 405 billion (2022-23) to India. 
• Pharmaceuticals, gems & jewellery, textiles, machinery, software, chemicals are some of India’s top exports to Canada, showing the depth of their commercial partnership. 

As per trade records, Canada received goods worth USD 411 billion (2022-23) from India. With operations in Canada, Indian companies such as IT, software, manufacturing, banking, natural resources are fostering bilateral business ties.

Socio-Cultural & Diaspora Engagement

India and Canada thrive from the positive influence of their diaspora, which significantly impacts Economic contribution, cultural bridge, political influence. By taking part in Strong people-to-people ties, arts, film, academic exchanges, both countries learn to respect and enjoy each other’s cultures. Educational ties between India and the other country are growing through Large number of Indian students in Canada, institutional partnerships. 

• Canada, primarily consisting of students and professionals, enhances cultural, educational, and economic connections, with numbers around Over 18 million, politically active, strong cultural presence. 
• Through the strategic application of Soft power: diaspora, education, cultural influence, India and Canada enhance their position in global affairs and expand their influence.
• The partnership between India and Canada thrives on mutual support, with Significant flow of remittances to India contributing greatly to economic advancement.

India Canada Relations Recent Developments

High-level engagements, including G20 Summit (2023), currently strained high-level engagement, have reaffirmed mutual commitment to peace, development, and collaboration.  

• As part of their bilateral agenda, India and Canada are pursuing S&T research projects, business collaborations (currently impacted). 
• Strategic cooperation is sometimes hindered by challenges like Khalistani extremism, diplomatic tensions, trade negotiations paused. 
• The relationship between the two countries is poised for growth, given the Long-term potential but currently facing significant diplomatic challenges.

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UPSC Relevance of India Canada Relations

• Questions on India’s bilateral relations with Canada may feature in UPSC Prelims under International Relations or Current Affairs.
• India–Canada relations are integral to GS Paper 2 (International Relations) under bilateral, regional, and global groupings.
• India–Canada ties can serve as case studies in essays on diplomacy, soft power, or global cooperation.
• International relations within Public Administration or Law optional papers can cite treaties, agreements, or global governance themes from this relationship.