India and Canada have long shared a complicated diplomatic relationship, one that oscillates between cooperation and conflict. While both countries have strong cultural, economic, and people-to-people ties—thanks in part to a large and influential Indian diaspora in Canada—their political relations have often been clouded by issues related to Sikh separatism and allegations of interference. The latest flashpoint in this uneasy relationship comes from a newly released report by the Canadian Security Intelligence Service (CSIS), which explicitly names India as one of the “main perpetrators” of foreign interference and espionage activities in Canada.
The annual CSIS report, made public in June 2025, includes serious allegations linking the Government of India to the 2023 killing of Hardeep Singh Nijjar, a Canadian citizen and prominent pro-Khalistan activist. The report states that this killing represents “a significant escalation in India’s repression efforts against the Khalistan movement and a clear intent to target individuals in North America.” It goes on to warn that the Government of India has been conducting foreign interference not only within Canada’s ethnic and cultural communities but also within its political system. These are strong words from Canada’s premier intelligence agency and are likely to further complicate an already fragile diplomatic relationship.
This latest report has come at a particularly sensitive time. Both Indian Prime Minister Narendra Modi and Canadian Prime Minister Justin Trudeau were present at the June 2024 G7 Summit in Italy. While no formal bilateral meeting took place between the two leaders, reports suggest that high-level officials from both countries held informal talks on the sidelines. These limited engagements indicated a tentative willingness on both sides to re-engage diplomatically after nearly two years of hostility. However, the timing of the CSIS report casts a long shadow over any potential diplomatic breakthroughs.
Historically, tensions between India and Canada have often centered around the Khalistan issue. Canada is home to over 770,000 Sikhs, making it the largest Sikh population outside of India. While the majority are peaceful, some vocal elements within the community continue to advocate for a separate Sikh homeland, a stance that India sees as a threat to its national unity. This disagreement reached its tragic peak in 1985 when Air India Flight 182 was bombed, killing 329 people—mostly Canadians of Indian descent. India has long believed that Canada has not done enough to clamp down on extremists operating under the protection of liberal democratic values.
The Nijjar case brought these tensions to the forefront again. When Prime Minister Trudeau stood in Parliament in 2023 and accused the Indian government of involvement in Nijjar’s assassination, India reacted furiously. It denied the accusations as “absurd and politically motivated” and responded by expelling Canadian diplomats and suspending talks on a trade agreement. The diplomatic fallout was immediate and severe, with both countries hardening their positions in public and private forums.
What makes the CSIS report especially troubling is that it does not merely refer to one isolated incident. Instead, it suggests a pattern of interference by India, including efforts to manipulate Canada’s political landscape and suppress dissent within the Sikh community. These claims are likely to fuel domestic debate within Canada about how to handle foreign influence while also straining public perception of India among Canadian citizens. At the same time, India continues to assert that it is merely protecting its sovereignty and countering extremist threats, especially from groups that promote the Khalistan ideology.
Despite these serious challenges, both countries have strong incentives to maintain a functional relationship. Canada views India as a critical partner in its Indo-Pacific strategy and a vital alternative market as it tries to reduce its dependence on China. India, on the other hand, sees Canada as a key player in global diplomacy and a country with valuable technology, education, and energy partnerships. The presence of Indian students and skilled professionals in Canada also contributes significantly to bilateral goodwill at the people-to-people level.
The recent G7 summit offered a narrow window for quiet diplomacy, but no significant progress was visible publicly. In private, both sides may be testing the waters for future talks. However, trust is a key issue. The CSIS report will not be easily brushed aside, especially since it reinforces the Canadian government’s earlier public stance. India is likely to push back strongly, as it has done in the past, arguing that Canada is sheltering individuals involved in anti-India activities and refusing to act decisively against extremism.
Moving forward, the path to reconciliation is uncertain and fraught with political risk. For Canada, balancing free speech and national security within its borders—especially as it pertains to its Sikh population—remains a delicate issue. For India, safeguarding its image and addressing concerns about sovereignty and terrorism abroad are paramount. Neither side appears ready to concede ground, but neither can afford a long-term rupture, especially as global alliances shift in the wake of broader geopolitical changes.
In conclusion, the release of the CSIS report has reignited deep tensions between India and Canada at a moment when both countries were tentatively exploring diplomatic re-engagement. While informal dialogue at the G7 summit suggested a desire to move forward, the serious allegations outlined in the report make such progress difficult. Whether this becomes an opportunity for honest dialogue or further deterioration depends on how both nations choose to manage the fallout in the coming weeks. Until then, the shadow of past grievances—most recently embodied in the Nijjar case—will continue to loom over Indo-Canadian relations.