After the Indian Independence in 1947, the relation between the countries were furthered with Canada keen to act as a bridge between India and the Western World.
The bombing of Air India Flight 182 in June 1985 and the events surrounding it, further led to misunderstandings between the two countries.
India called back its High Commissioner and expelled Canadian diplomats and warned against traveling to the other country.
[6] The Indian emigrants settled mostly in the sparsely populated Western Canada and took up jobs such as law enforcement officers and lumberjacks.
However, the race relations with white Canadians were strained as the legal and socioeconomic systems ensured racial discrimination and minimal direct contact by setting up various barriers.
[7][8] Though initially reluctant to go to these countries due to the racial discrimination, many young men chose to go upon the assurance that they would not meet the same fate in the early 20th century.
[10][11] Canada worked on creating an intercontinental group within the Commonwealth of Nations and was keen to act as a bridge between the newly independent Afro-Asian states and the Western World.
[13][14] During the Cold War, though Canada was favorable towards the United States, it pursued independent relation with India while the US aided Pakistan.
[15] Canada reacted negatively towards the same, especially in light of then ongoing negotiations on the Nuclear Non-Proliferation Treaty (NPT) and the economic aid it had provided to India.
Canada concluded that the test violated a 1971 understanding between the two states, and froze nuclear energy assistance for the two heavy water reactors then under construction.
[17][18] In the late 1970s, Canada focused on improving relations within the Western World while India pursued its own regional alliances.
In his verdict, Justice Ian Josephson cited "unacceptable negligence" by CSIS when evidence on the suspects and other informants were destroyed.
Canadian foreign minister Lloyd Axworthy sought further sanctions on India and termed it as the "use the tools of soft power to demonstrate that security is better achieved through multilateral ventures than the attainment of nuclear capabilities".
More than $3 billion worth of economic projects stagnated, and Canada ranked low amongst the foreign investors in India, with only a 1.4% share.
Both the countries sought to expand the bilateral relations across various sectors including education, energy, science and technology, culture, agriculture and the environment and multiple agreement on social security, foreign investment and economic partnership were agreed.
More than 100 bilateral agreements were signed between Canadian and Indian institutes and nearly 12,000 students traveled to Canada for higher education in 2011.
A new agreement on education was signed and the India-Canada Consular Dialogue was established to sort diplomatic issues between the nations.
Further agreements were signed in areas such as sport, information and communication technology, science and innovation and civil nuclear cooperation.
[26] During Trudeau's visit, he participated in a function in which Jaspal Atwal, a convict in the attempted murder of then Punjab minister Malkiat Singh Sidhu in 1986, also took part and drew criticism in India.
[42] Ex Canadian PM Stephen Harper said that Canada should stop cultivating divisive groups like pro Khalistani elements.
While the diplomatic row was initially triggered due to Canadian Prime Minister Justin Trudeau's allegations that the Indian government was involved in the assassination of Hardeep Singh Nijjar, the ongoing tensions between India and Canada have been largely fuelled by disagreements over the Sikh separatist Khalistan movement and its active supporters.
[51][52][53] In 2023, both countries expelled members of each other's diplomatic staff and advised their citizens against traveling to the other; Canada closed three consulates in India.