Canada: Trade Talks with India; Bill to Amend Citizenship Law

02
December
2025

In the strongest signal yet of a thaw in the relations between India and Canada, following a two-year diplomatic row triggered by the 2023 killing of a Sikh separatist Hardeep Singh Nijjar in British Columbia and subsequent expulsions of diplomats and disruptions to consular services, the two countries have agreed to restart talks on a long-delayed Free Trade Agreement. The rapprochement follows a 22 Nov meeting between Indian Prime Minister Narendra Modi and his Canadian counterpart Mark Carney on the sidelines of a Group of 20 summit in South Africa. That was the first meeting between the two leaders since Carney took office in March after he replaced Justin Trudeau. The goal is for bilateral trade to reach USD 50B by 2030, said the Indian government. The two countries exchanged about CAD 31B (USD 22B) in goods and services last year, according to Canadian official data. Carney also accepted Modi’s invitation to visit India early 2026. However, the underlying IndiaCanada tensions over Sikh separatism remain unresolved. Sikh activists, particularly those involved directly in the Khalistan referendum effort, have continued to receive 'duty to warn' letters from the Royal Canadian Mounted Police cautioning them that there are imminent threats to their lives. Sikhs for Justice also held a Khalistan Referendum in Ottawa on 30 Nov. Meanwhile, Canada is amending its citizenship-by-descent Bill C-3, an Act to amend the Citizenship Act 2025. The move is likely to affect thousands of Indian-origin families. A statement by the Canadian government said: 'This is a milestone in making the Citizenship Act more inclusive, while maintaining the value of Canadian citizenship...Once the new law comes into force, Canadian citizenship will be provided to people born before the Bill comes into force, who would have been citizens if not for the first-generation limit or other outdated rules of past legislation.' The first-generation limit to Canadian citizenship by descent was introduced in 2009. That law meant that a child born or adopted outside Canada is not a Canadian citizen by descent if their Canadian parent was also born or adopted outside Canada (earlier coverage).

Indian PM Narendra Modi & Canadian PM Mark Carney Photo by South China Morning Post

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