India doesn't see immediate impact on trade ties with Canada: Report

In the wake of the diplomatic fallout between India and Canada, New Delhi does not see an immediate impact on trade ties with Ottawa, reported news agency Reuters citing Indian government sources.

"We are not immediately concerned about trade ties. Our bilateral trade with Canada is not very large," the source told the news agency, speaking on condition of anonymity.

"We expect (Canadian) funds to make investment decisions based on returns and India offers attractive returns at the moment."

India's observation is in slight contrast to a statement of Canadian foreign minister Melanie Joly, who, when asked about potential sanctions against India, said: "Everything is on the table".

Bilateral trade between India and Canada had increased to $8.4 billion by the end of the last fiscal year on March 31 from $8.3 billion the previous fiscal year.

Strained diplomatic relations between India and Canada descended several notches lower on Monday after New Delhi expelled six Canadian diplomats hours after it summoned Canada's Charge d'Affaires Stewart Wheeler.

The action was in response to Trudeau's claim that their police uncovered evidence of an alleged targeted and worsening campaign against Canadian citizens by agents of the Indian government.

Later, Canada’s foreign ministry announced the expulsion of six Indian diplomats.

India conveyed that the "baseless targeting" of the Indian high commissioner and other diplomats and officials in Canada was completely unacceptable.

In a strong-worded statement, India said Canadian PM Trudeau's hostility to India has long been in evidence and his government has consciously provided space to violent extremists and terrorists "to harass, threaten and intimidate Indian diplomats and community leaders in Canada".

The ties between India and Canada soured after Canadian Prime Minister Justin Trudeau, in a parliamentary address last year, claimed that he has "credible allegations" of India's hand in the killing of Khalistterrorist Hardeep Singh Nijjar.

Nijjar, designated a terrorist by India's National Investigation Agency in 2020, was shot dead outside a gurdwara in Surrey in June 2023. India strongly denied the allegations, calling them "absurd" and "motivated." It also accused Canada of giving space to extremist and anti-India elements in their country.

India on Tuesday strongly refuted Trudeau's claims, stating that the assertions made by Canadian officials about presenting evidence in the Sikh extremist Hardeep Singh Nijjar case are untrue.

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