Reset on India-Canada card as Mark Carney: What does it mean for Indian students, visas, employment, business and diplomacy

Mark Carney’s election as Canadian Prime Minister can mark a dramatic change in India-Canada relations that deteriorate under Justin Trudeau. For India, this change in leadership opens a window to re -order diplomatic, economic and immigration relations with one of the top sites for Indian students and skilled workers.
What went wrong under Trudeau: Nijar to visa chaos
In 2023, India-Canada relations hit Rock Bottom, when Trudeau accused the Indian government of involvement in the murder of Khalistani separatist Hardeep Singh Nijar. The decline was immediate: diplomats were expelled, visa services were suspended, and both countries stopped talking.
Now, with Carney on the hull, India sees the opportunity to turn on the page. He has avoided the direct context of the Nijar issue, instead called a “mutual honor” to solve the “strains on the relationship”, a major departure with Trudeau’s confrontation tone.
Voting
Should Canada adopt strict measures against Khalistani extremism to improve relations with India?
‘India is incredibly important’: Carney’s outreach
The language of Carney is clearly different. Just before the elections, he said that India “incredibly important – personally, was economically and strategically important.” His presence at the Ram Navami event during the campaign was seen as a symbolic olive branch for the 1.8 million Indo-Canadian community of India and Canada.
Observers say that Carney’s desire to reduce economic dependence on the US, especially under another Trump Presidency, is motivating them to strengthen relations with prominent partners like India.
Why does it matter to Indian students and professionals
Canada is the top destination for Indian students, but the dream is rapidly disappearing:
- 2023: 278,860
Indian students in Canada (27%of all foreign students) - 2024: Consumption dropped more than 40% (Source: IRCC + Canadian Immigration Lawyer)
- Reason: Cap on permit, housing crisis, and anti -India spirit in politics
Carney has supported the Century Initiative, which plans to increase the Canadian population up to 2100 to 100 million through immigration. This can mean more opportunities for skilled Indian professionals, especially in healthcare, construction and technology. But there is a grip.
Carney’s new immigration roadmap includes:
- A hat on international student permit
- 150,000 temporary residents by 2025-26
- More investigation of private colleges
- Crackdown on “exploitative” work permit-linked visa system
For Indian students, this means only top ranked colleges and job-taiyar programs can secure permit and PR eligibility in the coming years.
Khalistan’s influence can shrink with the exit of Jagamet Singh
Jagmeet Singh, leader of the New Democratic Party leader and a coalition partner of Trudeau, was seen as a soft on Khalistani extremism in India. His defeat and the decision to quit the post removes a major domestic political cause for Canada’s silence on Khalistani activism.
Sources in India’s intelligence community say that they are already engaged in less public Khalistan after the elections in Canada-stating that the space may shrink under Carney’s rule.
India has made it clear that it will judge Canada not only on rhetoric, but also on action against Indian diplomats and extremist elements targeting missions.
Trade deal talks may be back on track
In September 2023, negotiations on the Comprehensive Economic Partnership Agreement (CEPA) between India and Canada were stopped. But the economic argument of close relations remains strong:
- CAD 13.5 billion in bilateral trade in 2023
- Indian Region Interest: IT, Pharma, Agriculture, Clean Energy
- Canadian Region Interest: Fertilizer, Oil/Gas, Education, AI
Carney has publicly stated that Canada should reduce its extremeness on the US. India – Now Canada’s 10th largest trading partner – can be central for that effort.
What will India see next
India’s expectations from Carney are clear:
- Visible action against Khalistani elements
- Start the normality of visa for students and professionals
- Revival of trade and technical dialogues
- Recovery of trust at diplomatic level-with a Modi-carna meeting on G20 or UNGA
The initial moves of Carney, including reshuffling of Canadian Foreign Ministry, will be closely viewed. Diplomats in New Delhi say they are looking for “not only soft language”.
India Equation: What is at stake
- 1.8 million Indo-Canadian (5%of Canada’s population)
- About 1 million Indian passport holders living in Canada
- CAD 6.5 billion contributed to Canada’s economy every year by Indian students
- More than 140,000 Indians granted permanent residence in 2023
Carney has a mandate, now India waits for tricks
With Trudeau, Khalistan politics became weak, and a leader who sees India as “strategically important”, New Delhi is ready to join again-but not without looking at Carney’s next steps.
For families with Indian students, professionals and Canada links, change in power is not only about diplomacy. This is about bringing their futures back on track.