Canadian PM Mark Carney's New Cabinet Offers Hope for a Reset in India-Canada Relations

The appointment of Indian-origin leaders to key positions in Canadian Prime Minister Mark Carney’s newly-formed cabinet is fueling cautious optimism in diplomatic circles, both in Ottawa and New Delhi. The change in government, following a period of deep strain in India-Canada ties, is being closely watched as a possible opportunity for bilateral reset.

The inclusion of four ministers of Indian descent — Anita Anand, Maninder Sidhu, Ruby Sahota and Randeep Sarai — all of Punjabi heritage, underscores Carney’s stated commitment to renewing dialogue with India, after relations deteriorated under former Prime Minister Justin Trudeau.

Speaking after the swearing-in ceremony, Prime Minister Carney emphasized “rebuilding mutual trust with important global partners,” in what appeared to be a subtle nod to India. The country remains one of Canada’s largest sources of immigrants and international students, but also a partner with whom diplomatic relations have been tested in recent years.

Among the most high-profile appointments is that of Anita Anand, who becomes Canada’s new Minister of Foreign Affairs — and notably, the first Hindu woman to hold the post. Her oath on the Bhagavad Gita during the swearing-in was widely reported in Indian media, symbolizing a potential shift in tone.

“India is a critical global partner,” Anand said in her first press statement. “We recognise the need to rebuild trust through transparent engagement and mutual respect.”

I am honoured to be named Canada’s Minister of Foreign Affairs. I look forward to working with Prime Minister Mark Carney and our team to build a safer, fairer world and deliver for Canadians. pic.twitter.com/NpPqyah9k3

— Anita Anand (@AnitaAnandMP) May 13, 2025

India’s Ministry of External Affairs welcomed the statement, with spokesperson Arindam Bagchi noting that India is “open to dialogue and cooperation with Canada on the basis of mutual understanding and non-interference.”

Appointments Reflect Strategic Intent

The appointments go beyond symbolism. Maninder Sidhu, a businessman-turned-politician, has been named Minister of International Trade. His prior work with Canadian businesses and ties to Indo-Pacific economic frameworks make him a natural choice to reinvigorate trade negotiations with India — including the long-stalled Comprehensive Economic Partnership Agreement (CEPA).

In a social media post, Sidhu said, “We must strengthen and expand the infrastructure that connects us to global markets.” His comments were echoed by new Trade Minister Jean-Michel Dufresne, who said the Carney government was “open to revisiting talks where both parties see mutual benefit.”

Ruby Sahota, now Secretary of State for Combatting Crime, brings legal experience and deep community roots in Brampton — a city with one of the highest concentrations of South Asians in Canada. Her appointment is seen as an effort to address domestic issues, particularly gang-related crime, with stronger community representation.

Randeep Sarai, a lawyer and Member of Parliament since 2015, has been named Secretary of State for International Development. Known for his advocacy on education and health initiatives, Sarai’s appointment may help reinforce Canada’s development agenda in South Asia.

Mixed Signals from New Delhi

While official statements from India have remained measured, senior diplomats suggest there is room for cautious optimism. One Indian official, speaking anonymously, said: “The Trudeau era was marked by rhetoric. If Carney’s government is more technocratic and less ideological, that opens space for pragmatic diplomacy.”

However, the core concern for India — the alleged tolerance of pro-Khalistan activism on Canadian soil — remains unresolved. The fallout from Prime Minister Trudeau’s accusations last year continues to linger in public memory, and analysts warn that a full rapprochement will require concrete steps, not just diplomatic gestures.

Diaspora as Bridge, Not Battlefield

Leaders in the Indo-Canadian community, many of whom distanced themselves from the previous administration’s India policy, are now advocating for more thoughtful engagement.

“There’s a huge appetite among Canadians of Indian origin to see the relationship restored,” said Manjeet Bains, President of the Canadian-Indian Business Council. “We want to be a bridge, not a battleground.”

Bains noted that both countries share democratic values, and that issues like migration and trade are areas of shared interest, not division. “We need policies that are firm on security, but also informed, respectful and globally minded.”

The Road Ahead

On the immigration front, Canada’s new Immigration Minister, Rachel Desjardins, has already signalled a willingness to address the backlog and delays that have affected Indian students and skilled migrants.

In 2023, Indians accounted for over 40% of international students in Canada. However, visa processing delays, worsened by diplomatic hostilities, have led to growing frustration among applicants and their families.

Desjardins has pledged to “streamline the visa process and restore confidence in Canada’s immigration pathways,” with early-stage discussions reportedly underway with Indian officials.

Strategic Context

The broader geopolitical environment may also incentivise closer cooperation. Both countries are looking to diversify trade and strategic alliances in the Indo-Pacific, amid rising concerns over China’s assertiveness.

“There is a strategic logic to a reset,” said Professor Radhika Menon of Jawaharlal Nehru University. “India and Canada, both democratic middle powers, have more to gain from collaboration than from conflict — especially on issues like regional security, climate action, and critical minerals.”

A First Test: G20 Summit

A call between Prime Minister Carney and Prime Minister Modi is reportedly being scheduled, with both sides preparing for a possible bilateral meeting at the G20 Summit later this year. While it is premature to declare a full diplomatic thaw, the signs point towards a more constructive chapter in the relationship.

“The mistrust runs deep,” said one former Indian ambassador. “But diplomacy, at its heart, is about second chances. This could be one.”