Diplomatic Rift with Canada Unlikely to Impact India Trade Ties

India anticipates minimal impact on its trade relations with Canada amid escalating diplomatic tensions spurred by allegations of India's involvement in the murder of a Sikh separatist leader. Despite the controversy, trade between the nations remains steady, and Canadian investors continue to find India attractive for their investments.

India reports that the diplomatic discord with Canada arising from accusations linking Indian diplomats to the murder of a Sikh separatist leader is not expected to affect bilateral trade ties immediately. This statement came from a government source on Tuesday, amidst heated allegations by Ottawa.

The relationship between the two countries deteriorated after Canada made allegations on Monday, accusing India's high commissioner and other diplomats of involvement in the killing of Sikh leader Hardeep Singh Nijjar. The accusations are deemed by India as part of Prime Minister Justin Trudeau's political strategy.

India asserts confidence in trade stability, noting that while bilateral trade reached $8.4 billion last fiscal year, it remains relatively small. The Indian government anticipates that Canadian investment funds will continue favoring India due to attractive returns. Despite ongoing diplomatic turmoil, Canadian enterprise involvement in key Indian sectors remains robust.

(With inputs from agencies.)