External Affairs Minister S Jaishankar, speaking at the UN General Assembly on September 27, indicated that India and Canada are preparing to elevate bilateral ties to a 'higher level.' The statement marks a notable diplomatic shift after a prolonged freeze triggered by Canada's 2023 allegations linking Indian agents to the killing of Khalistani separatist Hardeep Singh Nijjar, which led to mutual expulsion of diplomats and severe strain in relations.

India-Canada relations deteriorated sharply after Canadian Prime Minister Justin Trudeau accused Indian government agents of involvement in the June 2023 killing of Hardeep Singh Nijjar, a Canadian Sikh classified by India as a terrorist. India denied the allegations and termed them 'absurd.' Both countries expelled senior diplomats, Canada suspended free trade agreement (CETA) negotiations, and bilateral engagement hit its lowest point in decades.

The relationship matters strategically for several reasons. Canada hosts one of the largest Indian diaspora populations globally — over 1.8 million people of Indian origin — and is a top destination for Indian students. Bilateral trade stood at roughly CAD 12 billion (approximately USD 9 billion) annually before the crisis. India had been negotiating the Comprehensive Economic Partnership Agreement (CEPA) with Canada, which stalled amid tensions.

Jaishankar's statement at UNGA 2025 signals a possible thaw, likely influenced by the change in Canadian political leadership: Mark Carney replaced Trudeau as Prime Minister in March 2025, and his government has adopted a less confrontational posture toward India. For exam purposes, aspirants must know the key friction points — Khalistan issue, Nijjar killing, diplomat expulsions — and the institutional frameworks that define the relationship, including CEPA negotiations, the Five Eyes intelligence alliance that Canada belongs to (India does not), and India's consistent position on non-interference in internal affairs.