INDIA- CANADA
1. Context
- The recent diplomatic crisis between India and Canada has the potential to create significant political and geopolitical consequences.
- It all began when Canadian Prime Minister Justin Trudeau made a startling allegation in Parliament, suggesting the Indian government's involvement in the murder of a Khalistani separatist in Canada.
- The situation escalated rapidly, with both countries taking drastic diplomatic measures.
2. Canada's Allegation
- Canadian Prime Minister Justin Trudeau accusation that Indian security agencies might be linked to the murder of a Canadian citizen, Hardeep Singh Nijjar, sent shockwaves through diplomatic circles.
- Such a serious charge by a foreign leader against another nation before conclusive proof is rare and demands a thorough investigation.
- Canada's Foreign Minister Melanie Joly has emphasized the need for cooperation between the two countries in the investigation.
3. Diplomatic Escalation
- Canada took the initial step in the escalation by expelling an Indian diplomat in Ottawa, identified as the head of the Indian intelligence agency.
- In response, India expelled a Canadian diplomat based in New Delhi.
- India also issued travel advisories for its citizens in Canada, raising concerns about their safety. Visa services were suspended, affecting various categories of travellers.
4. About the Khalistan movement
- The Khalistan movement is a Sikh separatist movement that seeks to create an independent Sikh state called Khalistan in the Indian state of Punjab.
- The movement began in the 1970s and has been marked by violence and political unrest.
- The Khalistan movement is based on the belief that the Sikhs are a distinct people with their own unique culture and history.
- Sikhs believe that they have been persecuted by the Indian government, and they demand an independent state where they can govern themselves.
- The Khalistan movement has been supported by some Sikhs in India and abroad.
- However, it is opposed by the Indian government, which considers it to be a threat to national security.
4.1. Khalistan Problem Resurfaces
- This crisis has brought the long-standing issue of Khalistan back into India-Canada relations.
- While the relationship faced challenges in the past, including Canada's criticism of India's nuclear tests in 1998, the current issue centres around Canada's perceived support for separatist Khalistani groups.
- Canada's Liberal Party has been accused of pandering to these groups for votes, particularly in constituencies where Khalistani sympathies hold sway.
4.2. Khalistan and Canadian Politics
- Jagmeet 'Jimmy' Dhaliwal, associated with Canada's New Democratic Party, is viewed with suspicion by the Indian establishment due to his pro-Khalistan sympathies.
- Canada's hosting of events attended by individuals linked to pro-Khalistan outfits, like Jaspal Atwal, during Trudeau's visit in 2018, further strained relations.
- The Khalistan "referendum," encouraged by Pakistani intelligence agencies, has been a significant irritant in recent years.
5. Social and economic indicators between India and Canada
Canada's FDI in India: Canada accounts for a modest 0.56% of India's total Foreign Direct Investment (FDI). Out of the $645,386.0884 million in FDI equity inflow into India between April 2000 and June 2023, Canada contributed 0.5644% ($3,642.5243 million).
Indian Diaspora in Canada: Canada is home to a significant portion of overseas Indians. Of the 3,21,00,340 overseas Indians, 5.26% (16,89,055) reside in Canada. This includes 1,78,410 Non-Resident Indians (NRIs) and 15,10,645 Persons of Indian Origin (PIOs).
Indian Students in Canada: Canada is a popular destination for Indian students. In 2022, out of an estimated 13,24,954 Indian students studying abroad, 13.83% (1,83,310) were enrolled in Canadian institutions, according to data from the Ministry of External Affairs.
Canada's Role in Indian Tourism: Canada is the fourth-largest source of tourists visiting India, based on 2021 figures. Canadian tourists accounted for 5.3% (80,437) of Foreign Tourist Arrivals (FTAs) in India during that year. Notably, a significant portion of these tourists (72.6%) were members of the Indian diaspora.
Bilateral Trade: India's bilateral trade with Canada amounted to $8,161.02 million in the financial year 2022-23, making up only 0.70% of India's total trade of $1,165,000.88 million. Despite its modest size, India maintains a trade surplus with Canada, with exports surpassing imports by $58.45 million.
Trade Highlights
India's major exports to Canada during 2022-23 included medicines, vannamei shrimp, smartphones, gold-set diamond jewellery, basmati rice, iron pipes for oil/gas pipelines, coaches powered by external electricity, diamonds, and cotton t-shirts.
Key imports from Canada included coking coal, potassium chloride, lentils (masur dal), newsprint, wood pulp (mechanical and chemical pulp processes), and copper ores and concentrates.
5.1. Top Indian Imports from Canada
6. Diplomatic Complexity
- Diplomats familiar with Canada's foreign policy assert that the country is often influenced by immigrant interests.
- Pro-Khalistan elements, though a minority in the Canadian Sikh community, control several influential gurdwaras and can exert political influence in key constituencies.
- This small but influential group shapes Canada's policy towards India.
7. Geopolitical Implications
- Canada holds a significant role in global geopolitics, being part of the G7 and sharing intelligence within the Five Eyes alliance.
- This diplomatic standoff poses a challenge for Western powers, including the US, UK, Australia, Germany, France, and Japan, as they maintain strategic partnerships with both Canada and India.
- Balancing these relationships becomes crucial in the wake of this crisis.
8. Conclusion
- The India-Canada diplomatic crisis underscores the importance of addressing each other's concerns and conducting a fair and impartial investigation into the allegations.
- Both nations must work to de-escalate tensions and find a way forward while considering the broader geopolitical implications of their actions.
- This crisis serves as a lesson for Canada and its partners on how to handle the sensitive issue of Khalistan in diplomatic relations.
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For Prelims: India-Canada, Khalistan, Foreign Direct Investment, Tourism, Bilateral Trade, Geo-politics, Wood Pulp, News Print, Lentils, Potassium Chloride, Coking Coal
For Mains:
1. Examine the resurgence of the Khalistan movement in India-Canada relations. How has Canada's perceived support for Khalistani groups affected bilateral ties? (250 Words)
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Previous Year Questions
1. In the context of bilateral trade negotiations between India and the European Union, what is the difference between European Commission and European Council? (UPSC 2010)
1. European Commission represents the EU in trade negotiations whereas the European Council participates in the legislation of matters pertaining to economic policies of the European Union.
2. European Commission comprises of the Heads of State or government of member countries whereas the European Council comprises of the persons nominated by European Parliament.
Which of the statements given above is/are correct?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
Answer: D
2. With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic? (UPSC 2020)
A. It is the investment through capital instruments essentially in a listed company.
B. It is a largely non-debt creating capital flow.
C. It is the investment which involves debt-servicing.
D. It is the investment made by foreign institutional investors in the Government securities.
Answer: B
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