Context -

• Recently, diplomatic tussle in the relations between the two countries has increased after Canadian Prime Minister Justin Trudeau accused the Indian government of being behind the murder of Sikh leader Hardeep Singh Nijjar.
• As a result, first the Canadian government expelled Indian diplomat Pawan Kumar Rai and then India expelled a senior Canadian diplomat citing interference in India's internal affairs by Canadian diplomats.

 Background:

•  Diplomatic relations between the two countries were established in 1947.
•  The bilateral relationship was elevated to a strategic partnership during PM Modi's visit to Canada in 2015.

 Political cooperation:

• Canada is represented in India by the High Commission of Canada in New Delhi.
• India is represented in Canada through a High Commission in Ottawa and Consulates in Toronto and Vancouver.

 Economic cooperation:

•  India was Canada's 10th largest trading partner in 2022.
• Goods worth $4.10 billion were exported by India to Canada.
• Whereas Canada had exported goods worth $4.05 billion to India in 2022-23.
• India's exports to Canada include pharma, iron and steel, chemicals, gems and jewellery, nuclear reactors and boilers.
• Canada has the world's largest resources of uranium, natural gas, oil, coal, minerals and advanced technologies in hydropower, mining, renewable energy and nuclear energy.
• Indian companies in Canada are active in sectors such as information technology, software, steel, natural resources and banking.

Technology Collaboration:

• Canada was a partner country for the Technology Summit 2017.
• Under the IC-IMPACTS programme, the Department of Biotechnology implements joint research projects in health care, agro-biotechnology and waste management.
• The Department of Earth Sciences and Polar Canada have launched a program for knowledge exchange and scientific research on cold climate (Arctic) studies.
• Cooperation in the field of education and culture:
•  Shastri Indo-Canadian Institute (SICI) is a unique bi-national organization promoting educational and cultural cooperation between India and Canada since 1968.
• In October 2020, Canada announced the voluntary repatriation of the ancient Annapurna statue. The statue has been handed over to India and was installed inside the Kashi Vishwanath Temple in Varanasi in November 2021.

Indian Diaspora in Canada:

• At present, about 12 lakh people of Indian origin live in Canada, which holds great importance in terms of Indian diaspora.

 Challenges in India Canada Relations:

• During the recent meeting between Indian Prime Ministers Narendra Modi and Justin Trudeau on the sidelines of the G20 summit in Delhi, India issued a statement saying it was "deeply concerned" about "anti-India activities" in Canada.

It is noteworthy that Canada is a stronghold of Khalistan supporters.

 Way forward:

•  In the above situation, to improve relations between the two countries, emphasis should be laid on mutual cooperation and dialogue and confidence building measures should be adopted.

 Exam oriented Static facts

 Canada 

• Capital:Ottawa
•  Prime Minister:Justin Trudeau
•  Currency: Dollar (CAD)
• The second largest country in the world by area (after Russia)
• Major Lakes: Great Bear Lake, Great Slave Lake, Lake Winnipeg