Ottawa: Following his decisive victory in the Liberal Party leadership race, Mark Carney is set to become the next Prime Minister of Canada. With 85.9% of votes in his favor, Carney’s leadership marks the beginning of a new chapter for Canadian politics. Carney’s rise to power brings with it a promise to mend India-Canada ties, which reached their lowest point during Justin Trudeau’s tenure. The 59-year-old former banker has expressed his intent to rebuild diplomatic relations with India and diversify Ottawa’s trade relationships with like-minded countries.
 

Carney’s Stance on India-Canada Relations

Before his leadership victory, Carney addressed the media in Calgary, Alberta, where he emphasized the importance of improving economic ties with India. "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," Carney said during the interaction. He stressed that fostering trade partnerships with countries that share “a sense of values” is key to stabilizing Canada’s economic landscape. "If I am Prime Minister, I look forward to the opportunity to build that," he added.
 

Carney’s Economic Ties with India

Carney’s understanding of Canada-India economic relations is expected to benefit bilateral trade efforts. Having served as the Governor of the Bank of Canada and the Governor of the Bank of England, Carney brings considerable economic expertise to the table. Additionally, Carney formerly chaired the board of Brookfield Asset Management, which has invested significantly in India’s real estate, renewable energy, and infrastructure sectors. His involvement in Indian markets gives him a strong foundation to lead Ottawa’s efforts in improving trade ties with New Delhi.
 

Impact on Immigration Policies

With Canada being a prime destination for Indian migrants, immigration concerns are likely to be addressed under Carney’s leadership. As Canada’s population continues to rely heavily on skilled immigrants, Indian authorities may seek to ease visa restrictions and improve migration pathways.
 

Strained Relations Under Justin Trudeau

Relations between India and Canada hit a historic low in September 2023 when former PM Justin Trudeau alleged that Indian agents were involved in the assassination of Khalistani terrorist Hardeep Singh Nijjar on June 18, 2023. New Delhi strongly refuted these allegations, calling them "baseless" and unjustified. Following this diplomatic rift, both countries expelled each other's top diplomats, escalating tensions further. Adding to the strain, Canada halted the Early Progress Trade Agreement (EPTA), which was initially expected to be finalized in 2023. The freeze disrupted key economic opportunities for both nations.
 

Opportunities for Renewed Ties

Carney’s intention to mend diplomatic relations with India signals a fresh start. His background in international finance, coupled with his leadership in major economic institutions, positions him as a strong candidate to restore diplomatic stability. Experts believe that with US President Donald Trump’s ongoing tariff threats impacting both countries, improving trade ties with India could provide Canada with stronger economic security. As Mark Carney prepares to take office, his plans to rebuild ties with India mark a significant step toward restoring diplomatic stability. Strengthening bilateral trade, enhancing immigration frameworks, and addressing unresolved diplomatic disputes will be crucial during his tenure. With a shared focus on economic cooperation and strategic diplomacy, Carney’s leadership is expected to improve Canada-India relations while exploring new trade opportunities for both nations.