The Crossbill Team
Mark Carney, a former central banker and globally respected economist, took office as Canada’s Prime Minister on Tuesday following a surprise election victory that brought the Liberal Party back to power.
Carney’s ascension marks a historic moment in Canadian politics, as he becomes the first Prime Minister to have never held elected office or served in Cabinet prior to assuming the country’s top job.
Carney also holds the unique distinction of having headed the central banks of two G7 nations — Canada and the United Kingdom — and remains the only non-British citizen to have served as Governor of the Bank of England.
His technocratic background and global stature propelled him to the Liberal leadership after Justin Trudeau’s resignation in January, and he quickly called snap elections in March.
Shortly after Carney delivered his victory speech, Indian Prime Minister Narendra Modi took to social media to offer congratulations, signaling New Delhi’s willingness to reengage after nearly two years of strained ties.
“India and Canada are bound by shared democratic values, a steadfast commitment to the rule of law and vibrant people-to-people ties. I look forward to working with you to strengthen our partnership and unlock greater opportunities for our people,” Modi posted on X shortly after Carney’s victory speech.
The dramatic turnaround comes just months after the party appeared headed for electoral collapse. Former Prime Minister Justin Trudeau stepped down in January amid internal dissent, paving the way for Carney’s rapid rise and early election call in March.
The Liberal resurgence has been widely attributed to a surge in Canadian nationalism, fuelled by economic tensions with the United States and a string of provocative comments by President Donald Trump, including suggestions about annexing Canada. In his victory speech, Carney directly addressed those anxieties, saying, “President Trump is trying to break us so that America can own us; that will never … ever happen.”
Prime Minister Modi’s swift congratulatory note was widely seen as a signal of India’s willingness to recalibrate its position after nearly two years of strained relations.
Ties collapsed in September 2023 after then-Prime Minister Trudeau publicly accused Indian government agents of being involved in the killing of Canadian citizen Hardeep Singh Nijjar, who had been designated a terrorist by India for his involvement with Khalistan separatist groups.
The fallout led to a sharp diplomatic standoff, with both nations expelling diplomats. India suspended visa services for Canadian nationals, later resuming them after two months, while Canada was forced to withdraw 41 diplomats, severely disrupting its consular services.
The bilateral freeze deepened when Canadian authorities accused Indian agents of broader criminal activities targeting South Asian Canadians. India, in turn, expelled several Canadian diplomats and withdrew its high commissioner.
Throughout the standoff, Indian hostility appeared directed as much at Trudeau personally as at his government. New Delhi’s official statements frequently blamed the “Trudeau government” and held the former prime minister solely responsible for the breakdown in ties.
In October 2024, tensions escalated further when Canada claimed Indian Home Minister Amit Shah was involved in plots targeting Canadian nationals, a claim confirmed by a senior Canadian official in parliamentary testimony.
India’s approach to similar allegations from the United States was notably different. When US prosecutors charged an alleged Indian intelligence operative in connection with a plot to assassinate Khalistani leader Gurpatwant Singh Pannun in New York, India responded more cautiously. External Affairs Minister S. Jaishankar confirmed that evidence had been shared and that an internal inquiry was underway.
Carney’s ascent offers a potential opening for normalization. Although the Liberals remain in power, Trudeau’s departure may help reset the tone. Reports suggest discussions are already underway regarding the reappointment of high commissioners, a likely first step toward rebuilding diplomatic trust.
India has historically maintained close ties with former Conservative Prime Minister Stephen Harper and was viewed in Canadian political circles as favouring the Conservatives during this election cycle.
A report by The Globe and Mail claimed that Indian proxies were allegedly involved in fundraising and mobilization for Conservative leader Pierre Poilievre during his leadership campaign. Poilievre later denied receiving any support from India.
While India figured little in official campaign debates or manifestos—overshadowed by domestic economic issues and Trump’s aggressive rhetoric—remnants of the bilateral tension remained. Both major parties dropped Indian-origin candidates due to suspected links with the Indian government or controversial social media posts targeting protesters.
Throughout his campaign, Carney stressed the importance of restoring ties with India, citing it as a key partner in Canada’s strategy to diversify trade amid growing friction with the United States.
“There are opportunities to rebuild the relationship with India,” Carney said in March.
“There needs to be a shared sense of values around that commercial relationship. If I’m prime minister, I look forward to the opportunity to build that.”
In the final weeks of campaigning, he described the India-Canada relationship as “incredibly important … on many levels,” adding that both countries could play leading roles in shaping an open, collaborative global economy.
While he emphasized mutual respect, Carney also hinted that the diplomatic rupture was not of Canada’s making, stating, “There are strains on that relationship that we didn’t cause, to be clear, but there is a path forward to address those.”
Trade is likely to serve as common ground in any potential rapprochement, especially in light of Trump’s unpredictable trade stance. Yet, underlying frictions remain. The upcoming trial of four Indian nationals arrested in connection with Nijjar’s killing is expected to put Canadian evidence on public display, posing a serious test for efforts at reconciliation.
As Mark Carney begins his tenure, the future of India-Canada ties will hinge on whether both governments can overcome mutual distrust while managing sensitive legal and diplomatic challenges.
Carney’s ascension marks a historic moment in Canadian politics, as he becomes the first Prime Minister to have never held elected office or served in Cabinet prior to assuming the country’s top job.
Carney also holds the unique distinction of having headed the central banks of two G7 nations — Canada and the United Kingdom — and remains the only non-British citizen to have served as Governor of the Bank of England.
His technocratic background and global stature propelled him to the Liberal leadership after Justin Trudeau’s resignation in January, and he quickly called snap elections in March.
Shortly after Carney delivered his victory speech, Indian Prime Minister Narendra Modi took to social media to offer congratulations, signaling New Delhi’s willingness to reengage after nearly two years of strained ties.
“India and Canada are bound by shared democratic values, a steadfast commitment to the rule of law and vibrant people-to-people ties. I look forward to working with you to strengthen our partnership and unlock greater opportunities for our people,” Modi posted on X shortly after Carney’s victory speech.
Congratulations @MarkJCarney on your election as the Prime Minister of Canada and to the Liberal Party on their victory. India and Canada are bound by shared democratic values, a steadfast commitment to the rule of law, and vibrant people-to-people ties. I look forward to working…
— Narendra Modi (@narendramodi) April 29, 2025
The dramatic turnaround comes just months after the party appeared headed for electoral collapse. Former Prime Minister Justin Trudeau stepped down in January amid internal dissent, paving the way for Carney’s rapid rise and early election call in March.
The Liberal resurgence has been widely attributed to a surge in Canadian nationalism, fuelled by economic tensions with the United States and a string of provocative comments by President Donald Trump, including suggestions about annexing Canada. In his victory speech, Carney directly addressed those anxieties, saying, “President Trump is trying to break us so that America can own us; that will never … ever happen.”
Prime Minister Modi’s swift congratulatory note was widely seen as a signal of India’s willingness to recalibrate its position after nearly two years of strained relations.
Ties collapsed in September 2023 after then-Prime Minister Trudeau publicly accused Indian government agents of being involved in the killing of Canadian citizen Hardeep Singh Nijjar, who had been designated a terrorist by India for his involvement with Khalistan separatist groups.
The fallout led to a sharp diplomatic standoff, with both nations expelling diplomats. India suspended visa services for Canadian nationals, later resuming them after two months, while Canada was forced to withdraw 41 diplomats, severely disrupting its consular services.
The bilateral freeze deepened when Canadian authorities accused Indian agents of broader criminal activities targeting South Asian Canadians. India, in turn, expelled several Canadian diplomats and withdrew its high commissioner.
Throughout the standoff, Indian hostility appeared directed as much at Trudeau personally as at his government. New Delhi’s official statements frequently blamed the “Trudeau government” and held the former prime minister solely responsible for the breakdown in ties.
In October 2024, tensions escalated further when Canada claimed Indian Home Minister Amit Shah was involved in plots targeting Canadian nationals, a claim confirmed by a senior Canadian official in parliamentary testimony.
India’s approach to similar allegations from the United States was notably different. When US prosecutors charged an alleged Indian intelligence operative in connection with a plot to assassinate Khalistani leader Gurpatwant Singh Pannun in New York, India responded more cautiously. External Affairs Minister S. Jaishankar confirmed that evidence had been shared and that an internal inquiry was underway.
Carney’s ascent offers a potential opening for normalization. Although the Liberals remain in power, Trudeau’s departure may help reset the tone. Reports suggest discussions are already underway regarding the reappointment of high commissioners, a likely first step toward rebuilding diplomatic trust.
India has historically maintained close ties with former Conservative Prime Minister Stephen Harper and was viewed in Canadian political circles as favouring the Conservatives during this election cycle.
A report by The Globe and Mail claimed that Indian proxies were allegedly involved in fundraising and mobilization for Conservative leader Pierre Poilievre during his leadership campaign. Poilievre later denied receiving any support from India.
While India figured little in official campaign debates or manifestos—overshadowed by domestic economic issues and Trump’s aggressive rhetoric—remnants of the bilateral tension remained. Both major parties dropped Indian-origin candidates due to suspected links with the Indian government or controversial social media posts targeting protesters.
Throughout his campaign, Carney stressed the importance of restoring ties with India, citing it as a key partner in Canada’s strategy to diversify trade amid growing friction with the United States.
“There are opportunities to rebuild the relationship with India,” Carney said in March.
“There needs to be a shared sense of values around that commercial relationship. If I’m prime minister, I look forward to the opportunity to build that.”
In the final weeks of campaigning, he described the India-Canada relationship as “incredibly important … on many levels,” adding that both countries could play leading roles in shaping an open, collaborative global economy.
While he emphasized mutual respect, Carney also hinted that the diplomatic rupture was not of Canada’s making, stating, “There are strains on that relationship that we didn’t cause, to be clear, but there is a path forward to address those.”
Trade is likely to serve as common ground in any potential rapprochement, especially in light of Trump’s unpredictable trade stance. Yet, underlying frictions remain. The upcoming trial of four Indian nationals arrested in connection with Nijjar’s killing is expected to put Canadian evidence on public display, posing a serious test for efforts at reconciliation.
As Mark Carney begins his tenure, the future of India-Canada ties will hinge on whether both governments can overcome mutual distrust while managing sensitive legal and diplomatic challenges.
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