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Nearly two million people of Indian origin live in Canada while four lakh Indian students study there. Diplomatic fallout notwithstanding trade between the two countries have remained largely unaffected. 

Belonging to the Liberal Party, Mark Carney’s election is therefore an opportunity for renewed cooperation. This can only follow if Canada is willing to address India’s legitimate  concern on the Khalistan issue.  

Looking back when Justin Trudeau resigned as Prime Minister of Canada in January approval ratings fell. Many considered the Liberal Party dead and buried ahead of the general elections. 

As Trudeau ‘s replacement, Mark Carney, an unselected central banker, faced the formidable task of reviving a flailing economy. He is still tasked with rescuing a fractured party. 

 Beginning his second term as US President, Donald Trump threw a lifeline to Carney albeit unwittingly. His suggestion to annex Canada as the 51st state of US and a wave of new tariffs pivoted Canadian political discourse towards national pride. 

Riding a wave of anti-Trump sentiment , Carney led the liberals to a surprising but narrow electoral win.  The defeat of Jagmeet Singh in the election is a silver lining for India.  

Singh, leader of the New Democratic Party (NDP)  lost the parliamentary seat he has held since 2019. The NDP supported Trudeau ‘s minority government from 2021 to 2024, but this time failed to meet the 12-seat threshold for the official party status. 

Indo-Canadian relations took s backseat after Trudeau levelled an unsubstantiated allegation against India of killing Khalistani terrorist Hardeep Singh Nijjar. Meanwhile, Canada has identified India as a critical regional partner in its Indo-Pacific tragedy citing a expanding  interest.

It is countering China’s external influence.  Now Canada’s new dispensation needs to be willing to address India’s legitimate security concerns on Khalistan issue. 

Carney has already signalled his willingness to “rebuild” ties with India. He has called this relationship “incredibly important”. 

A “diplomatic gridlock ” had come about in Indo-Canadian relations in the Trudeau era. Carney ‘s government has to go beyond the previous situation for forging a meaningful alliance. 

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