Canada's Economy
Canada and India: Trade, Students and Tensions
How the Indian diaspora, international students and pension investments link Canada and India, and how diplomatic tensions from 2023 affected ties.
Canada and India have close people-to-people ties.
Diaspora
- Around 1.8 million Canadians have Indian origins, including a large Punjabi community.
Students
- Indians became the largest group of international students in Canada.
- Canada cut study permits from 2024, sharply reducing Indian enrolments.
Trade and investment
- Canada exports lentils, potash, coal and wood pulp to India.
- India exports medicines, textiles and machinery.
- Canadian pension funds invest heavily in India.
Tensions
- In September 2023, Canada’s prime minister alleged Indian government links to the killing of a Sikh separatist in Canada; India rejected the claims.
- Diplomats were expelled, and trade talks were paused.
- Relations began to be rebuilt in 2025 with new envoys.
Economic stakes
Ties matter for students, pulses trade and investment.
The lentil shipment
A Saskatchewan farmer's lentils are shipped to India, where they become dal in millions of kitchens.
Thinking diplomatic disputes don't affect the economy
Tensions paused trade talks and affected student flows.
Key takeaways
- About 1.8 million Canadians have Indian origins.
- Indians were Canada's largest student group until 2024 caps.
- Canada exports lentils and potash; pension funds invest in India.
- Tensions from 2023 paused trade talks; ties began rebuilding in 2025.
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