Bikky Khosla | 30 Apr, 2025
For long I have been watching the evolving diplomatic landscape between India and Canada with a mixture of hope and caution. Over the past year, tensions between the two nations strained not just political ties, but also the prospects for trade and investment. The fallout has been felt most acutely by businesses, especially MSMEs, who rely on steady, predictable access to international markets. But with this week’s election results, I see a unique window of opportunity, maybe even a reset for both the countries’ trade relations.
Canada’s new political leadership appears more pragmatic and open to diplomatic engagement. If early statements are to be believed, there is a renewed emphasis on rebuilding fractured alliances and restoring trust with key partners. For India, which has always valued trade as a key component of its diplomacy, this presents a strategic opening in the wake of US trade tariffs. Indian exporters are actively seeking new markets and a thaw in India-Canada ties can come as an opportunity.
From the exporter's standpoint, this could not come at a better time. The past months of diplomatic chill led to uncertainty over the Early Progress Trade Agreement (EPTA), and left many in limbo. Our exporters were caught between shifting tariffs, suspended dialogues, and a growing sense of unpredictability. But the change in political tone now can pave the way for those negotiations to resume with fresh vigor.
The potential benefits are significant for both the countries. Canada is a high-income economy with a large Indian diaspora, offering a natural market for everything from textiles and pharmaceuticals to IT services and processed foods. If trade talks resume with sincerity and both governments prioritize economic cooperation, wherein exporters will see fewer barriers, faster clearances, and renewed investor confidence. This, in turn, will mean a surge in exports from India where our small exporters stand to benefit manifold.
Having said that, a reset in our ties with Canada will require more than diplomatic niceties. We need transparent timelines, revived business-to-business dialogues, and clarity on visa and mobility frameworks that facilitate trade. It goes without saying that good ties between the two nations means good news for Canada, too. It can benefit immensely from Indian goods and services.
This is a moment where diplomacy must meet pragmatism. As a person who has always been working for the wellbeing of our exporters, a new chapter in India-Canada relations is only possible if it begins with trade.
