India halts trade talks with Canada amidst Khalistani row

India has halted talks for a comprehensive free trade agreement (FTA) with Canada, which is not a crucial nation for the country's commodities' requirement as bilateral merchandise trade between the two countries was a mere $8 billion in FY23, with exports and imports almost balanced, two official stated.

Canada is also allowing its land to be used by subversive elements against India. However, since India's imports from the country can be taken from any other more friendly country, the national capital does not have to solely be dependent on Canada for crucial commodities.

Trade statistics between India and Canada

In 2022-2023, India exported merchandise worth $4.11 billion to Canada and imported goods, such as coal, fertiliser, pulses, pulp and aluminium worth $4.17 billion, as per the official data.

India's exports to Canada fell year-on-year by 20 per cent to $1.24 billion in the first four months of the current financial (FY24). the imports also contracted by 6.39 per cent in the same period at $1.32 billion, as per the official data.

As of now, India exports pharmaceuticals, iron products, telecom equipment, garments, marine products, auto components, iron and steel to Canada.

New Delhi suspends FTA with Canada

Recently, New Delhi suspended free-trade talks with Canada as Ottawa alleged that subversive elements were conducting anti-India activities on soil. The development came after Prime Minister Narendra Modi spoke to Canadian Prime Minister Justin Trudeau over anti-India elements promoting secessionism. 

Khalistani terrorist row

Meanwhile, Canadian Prime Minister Justin Trudeau hit out at India in connection with the killing of the wanted Khalistani terrorist Hardeep Singh Nijjar. Addressing the Canadian Parliament, Trudeau stated that the Indian government may have had links to the assassination of a Sikh separatist in Canada. 

Following this, the Ministry of External Affairs (MEA) on Tuesday summoned the Canadian High Commissioner to India, Cameron MacKay, and informed him about the decision of the government to expel a senior Canadian diplomat based in India.