What's Really Happening Between India and Canada?

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Canadian Prime Minister Justin Trudeau has recently intensified tensions between Canada and India by publicly announcing that there's credible evidence linking agents of the Indian government to the assassination of Hardeep Singh Nijjar, a Sikh separatist leader in British Columbia. Nijjar was an advocate for Khalistan, an independent Sikh nation proposed to be established in India's Punjab region. This event has prompted a notable downturn in the bilateral ties of the two nations. In response to Trudeau's allegations, India has refuted the claims, labeling them as "absurd and motivated."

Canada-India Tensions Over Sikh Separatist Leader's Death

The backdrop of this contention is the significant Sikh diaspora in Canada, which is the largest outside of India's Punjab state. Canada has been a witness to a series of pro-Khalistan sentiments and events, a movement which experienced major upheaval in India during the 1980s and 1990s. India has repeatedly raised concerns with the Canadian government regarding what they perceive as a revivalist tone among Sikh hardliners in Canada. The recent assassination and subsequent allegations have only exacerbated these longstanding issues.

The diplomatic fallout has been rapid. Following Trudeau's remarks, an Indian diplomat, described as the head of India's foreign intelligence agency in Canada, was expelled. India, in retaliation, ordered a senior Canadian diplomat to leave. Additionally, trade talks that were underway between the two nations, aiming for a potential agreement by the end of 2023, have been stalled.

Notably, the implications of this rift could be more extensive. Both Canada and India are key partners of major Western countries, such as the United States, the United Kingdom, and Australia. These nations, which have significant Sikh populations themselves, have shown tacit support for Canada's concerns regarding the assassination. The situation has raised eyebrows in the global political community and could influence diplomatic relations in broader international circles.

Deepening Canada-India Diplomatic Rift Over Sikh Activist's Assassination

• Canadian PM, Justin Trudeau, stands firm on his claims about Indian agents being linked to the assassination of Sikh activist, Hardeep Singh Nijjar, causing a diplomatic rift.

• Trudeau emphasized that Canada's intent isn't to provoke India, but to lay out facts and ensure accountability.

• This has aggravated tensions between the two nations, impacting their relationship and other major Western countries.

• India, in response, accuses Canada of sheltering terrorists and has long-standing concerns about Canada's inaction against extremists.

• Following Trudeau's statements, Canadian Sikh community groups requested that intelligence, investigative, and prosecutorial cooperation with India be halted.

• The Khalistan movement, promoting an independent Sikh state from parts of India’s Punjab, is banned in India, and associated groups are labeled as “terrorist organizations.”

• Bilateral relations have been strained for years. During the recent G20 leaders meeting in New Delhi, Indian PM Narendra Modi expressed concerns about extremist activities in Canada but didn't meet Trudeau privately.

• Western nations, like the US, UK, and Australia, showed some support for Canada's claims, emphasizing the importance of a thorough investigation.

How the India-Canada rift impacts trade, travel, students in canada, business & investments

Trade: Canada has paused discussions about a proposed treaty with India, a significant reversal after the recent positive momentum towards finalizing an agreement. The Comprehensive Economic Partnership Agreement (CEPA) between the two could have increased bilateral trade by up to $6.5 billion and raised Canada's GDP by $3.8 billion to $5.9 billion by 2035.

Trade Dynamics: In 2022, trade between Canada and India was valued at $8 billion. While Canadian farmers profited from India's lentil demand, Indian pharmaceutical and software sectors grew in Canada. Canada's imports from India include energy products and fertilizers, while India imports consumer goods, garments, engineering and electronic products.

Investments: Canada, India's 17th largest foreign investor, has invested over $3.6 billion since 2000. The Canadian Pension Plan's investments in India are notable, focusing on real estate, renewables, and finance, totaling about $15 billion as of March 2023.

Corporate Relations: Over 600 Canadian companies operate in India, while over 30 Indian firms, especially major IT corporations, have invested substantially in Canada.

Education: Since 2018, India is the leading source of international students in Canada, with the number growing by 47% in 2022. This benefits Canadian institutions while offering affordable education for local students.

Sikh Community: The Sikh community could be heavily affected by India-Canada tensions. Sikhs in Canada, 2.1% of the total population according to the 2021 census, have been remitting considerable sums to families in Punjab. Their numbers have doubled over the past 20 years, mainly due to migration for education and employment.

Travel Concerns: The rise in anti-Indian sentiments in Canada has led to advisories for Indians in Canada to be vigilant. This comes after threats targeting Indian diplomats and community members. Simultaneously, Canada has issued a travel warning for its citizens about the security situation in Jammu and Kashmir, with exceptions for the Union Territory of Ladakh. These advisories were influenced, in part, by the death of Khalistani leader, Hardeep Singh Nijjar, in Canada.

As the India-Canada relationship remains strained, the repercussions for trade, investment, and interpersonal relations are still to be fully realized, drawing the close attention of the global community.

Important News of the Day

1. Parliament passed Women's reservation bill

The Women's Reservation Bill and Chandrayaan-3 are on the agenda for the fourth day of the Parliament's special session in India. The bill, which grants one-third of seats in the parliament to women, was passed with 454 votes in the Lok Sabha and will be discussed in the Rajya Sabha on Thursday. Meanwhile, the Lok Sabha will discuss Chandrayaan-3, India's third lunar mission. The Parliament's special session began on September 14 and is being held to mark the inauguration of the new Parliament building in New Delhi.

2. StrideOne in talks to acquire EV tech startup MoEVing

StrideOne Capital Pvt. Ltd, a non-banking financial company (NBFC), is in talks to acquire MoEVing Urban Technologies Ltd, the operator of the electric vehicle (EV) tech startup MoEVing. The potential deal is likely to facilitate Stride’s entry into the last-mile EV financing sector. StrideOne Capital was set up by the founders of venture debt fund Stride Ventures. The acquisition will proceed in three stages, starting with a 26% divestment of LetsVenture through an equity sale and a cash component. StrideOne claims to have an asset under management (AUM) of INR 200 Cr across 20 startups that are working as anchor companies with it.

3. WhatsApp adds rival payment options in India commerce push

WhatsApp, owned by Meta Platforms Inc., announced on Wednesday that it will offer credit card payments and services from rival digital payment providers within its app in India. This move is aimed at boosting commerce offerings in its biggest market. Payments via rival services that run on India's instant money transfer system UPI will now be possible directly within WhatsApp. This will enable users to make payments to merchants and other users on the platform using their preferred payment method. The move is expected to intensify competition in India's digital payments market.

4. 42% graduates under 25 years remained jobless post-covid

According to a report on the labor market, 42% of graduates under the age of 25 remained unemployed after the COVID-19 pandemic, while the pace of job creation decreased following the global economic slowdown. The report also found that there is a large variation in the rate of unemployment even among people with higher education. The unemployment rate for graduates in the age group of 35 to 39 years is 4.5%, and it declines further to 1.6% for graduates who are 40 years or older.

5. Saudi cuts Asian premium after India taps Russian oil

Saudi Arabia has reduced the premium charged on exports to India after India began sourcing the bulk of its energy requirements from Russia. The premium, known as the Asian premium, is an extra amount levied by the Organization of the Petroleum Exporting Countries (OPEC) from Asian countries above the actual selling price. Saudi Arabia has now reduced the premium to $3.5 per barrel from around $10 in the past year. Other suppliers have discontinued the premium altogether. This move comes as Saudi Arabia and Russia have extended their voluntary oil output cut of 1 million barrels per day until the end of December 2023.

6. Meesho takes plunge into branded business

Meesho, an Indian e-commerce marketplace, has launched its own branded business, making it the first horizontal Indian e-commerce company to do so. The brand expects to drive at least 5% of its business through offline stores. Meesho has onboarded over 10 million entrepreneurs across India, enabling them to sell on WhatsApp, Facebook, and Instagram by providing them products, logistics, and payment tools. The startup has created a disruptive supply channel for 50,000+ manufacturers/suppliers across the country. Meesho has refreshed its logo and launched sonic branding to solidify its presence as a marketplace that sells value-first products across brand categories.

7. Haworth to set up new manufacturing unit in Chennai

Furniture manufacturer Haworth is set to invest between $8-10 million in a new manufacturing facility in Sriperumbudur, near Chennai, India. The new factory will be the company's second in the country and will help Haworth to double its production capacity. The move is part of the company's strategy to expand its presence in India and to increase its exports. The new facility is expected to be operational by mid-2024 and will produce a range of furniture products. Haworth also recently inaugurated a new showroom and a Global Shared Services Centre in Chennai.

8. PFC, SJVN tie up for ₹1.18 trillion investment in RE, thermal projects

State-run Power Finance Corporation (PFC) and SJVN have signed an MoU for providing financial support to various projects, including massive renewable energy ventures totaling 12,178 MW capacity, along with a 660 MW thermal generation project for an estimated project cost of around ₹1.18 trillion. As part of the MoU, PFC has proposed to offer financial support to SJVN in the form of a term loan.The Indian government has announced investment of up to Rs4 trillion in the infrastructure sector, equivalent to 2.4% of gross domestic product.

9. Adani plan to raise $1.5 Bn for green power

French energy company TotalEnergies is reportedly leading a plan to raise $1.5 billion for Adani Green Energy, an Indian renewable energy company controlled by billionaire Gautam Adani. The plan includes a $300 million investment from TotalEnergies to create a joint venture with Adani Green Energy Twenty Three Ltd. The joint venture will focus on developing renewable energy projects in India. The investment by TotalEnergies has settled doubts about its commitment to the joint venture.

10. India gets ‘advice’ from US on Canada's probe in Hardeep Singh Nijjar killing

The United States has provided "advice" to India regarding Canada's probe into the killing of Khalistan terrorist Hardeep Singh Nijjar. The US expressed deep concern over Canada's allegations against India, which suggest that Indian agents may have been involved in the murder. Canada and the US have been working closely on the investigation, while India has dismissed the allegations as absurd. The killing of Nijjar has sparked a diplomatic skirmish, with Canada seeking India's cooperation in the investigation.

World News 🌎

• South Korea to hold talks with Japan, China over resumption of Trilateral Summit

• Donald Trump to skip third Republican presidential debate in Florida

• OpenAI unveils its latest text-to-image generation model, DALL-E 3

• May have to cancel 700 flights in September, Akasa Air tells court after many pilots resign 'abruptly'|

• Google Doodle commemorates Armenia’s Independence Day today

• Disney CEO Bob Iger promises to ‘quiet the noise’ in culture wars

• King Charles’ France trip fails to impress locals

• 'Not trying to provoke, want answers': Trudeau on Khalistani terrorist's killing

• Pakistan begging for funds while India has reached Moon: Nawaz Sharif

• Elon Musk may charge ‘small’ monthly payment from X users

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