Khalistan Embassy opening in Canada sparks fresh crisis in India-Canada relations

Indo-Canadian relations, already fragile and cautiously recovering after recent diplomatic showdowns, face a fresh crisis. The recent opening of the so-called “Embassy of the Republic of Khalistan” in Surrey, British Columbia, undoubtedly undermines India’s sovereignty and even threatens to unravel hard-fought diplomatic progress, reigniting tensions between the two nations. But the vital question at this juncture is: Can India and Canada afford to let these fringe factions advance their divisive agenda, imperilling not just international diplomacy but also sowing discord within the Indian diaspora? The stakes are too high for complacency.

Located at Guru Nanak Sikh Gurdwara — once led by Hardeep Singh Nijjar, a designated terrorist by India, whose murder ignited severe diplomatic tensions — the Khalistan Embassy is a bold statement from radical Sikh separatist groups, particularly Sikhs for Justice (SFJ), headed by another designated terrorist, Gurpatwant Singh Pannun. While neither the federal nor the British Columbia governments have so far responded to this development, the Indian High Commission in Ottawa had earlier this week issued a statement strongly condemning the move. The statement viewed the development as a direct affront to India’s sovereignty and called on Canada to act against anti-India elements, emphasising that such activities threaten bilateral ties and regional stability.

While a response from Mark Carney’s federal government may not be in place yet, given the diplomatic sensitivity involved in the issue, the stoic silence of British Columbia Premier David Eby, despite an official statement by the Indian High Commission, is surprising, as reports even suggest that the building housing the “embassy” received a USD 150,000 grant from the state. Incidentally, British Columbia has an NDP government, a party that until recently was led by Jagmeet Singh, a well-known Indo-Canadian politician and Khalistani sympathiser.

For any sane person, a simple question would be why Canada allows these fringe elements to propagate Khalistan when it is a non-issue in India. The answer is vote bank politics and Canada’s legal framework, which places a high value on freedom of expression, protected under Canadian Charter of Rights and Freedoms. This willy-nilly legitimises separatist activities like the Khalistan Embassy signage and referendums by dubbing them as “legitimate” political, non-violent expression. Canada distinguishes between peaceful advocacy for Khalistan and violent extremism, with the former protected under free speech laws. The Canadian Security Intelligence Service (CSIS) noted in its 2024 report, “Non-violent advocacy for an independent state of Khalistan is not considered extremism,” which may even complicate action against symbolic gestures like the “embassy”. However, the latest CSIS report of June 2025 for the first time has publicly acknowledged Khalistani extremists as a threat. The report stated, “Khalistani extremists continue to use Canada as a base for the promotion, fundraising, or planning of violence primarily in India,” which marks a major shift in Canada’s official recognition of the issue.

Canada has a sizable Sikh population of over 770,000 (2021 census), and they wield considerable political clout, especially in British Columbia and Ontario. Political parties of all hues have been cautious about alienating Sikh voters, creating an environment where even fringe elements advocating for Khalistan find space to operate under the guise of free expression. While by and large the majority of Sikhs are secular and do not subscribe to the Khalistan ideology, a minuscule population supports it, and being violent and loud, they overshadow the sane voices, giving an impression that they are in command and in the majority.

Former Premier of British Columbia and a prominent Indo-Canadian Sikh, Ujjal Dosanjh, who was also a federal cabinet minister under Liberal Prime Minister Paul Martin, had categorically said that “Khalistanis are not a majority, and the fact nobody speaks against them is out of fear. Through intimidation, Khalistani supporters control many of the temples in Canada”. He had last year blamed Trudeau for creating an atmosphere where “Canadians equate Khalistanis with Sikhs, as if you are a Khalistani if you are a Sikh”.

So the question now arises: Can India and Canada allow these provocative actions of fringe elements to jeopardise their relationship? While the situation is fraught with challenges, pragmatic steps by both countries can mitigate tensions. The first and foremost should be a public reaffirmation by Canada that it respects India’s sovereignty and neither supports a separatist state, nor their activities in Canada, even though they are considered legitimate. It is also imperative that Canada continues law enforcement dialogue and addresses India’s security concerns from Khalistanis, which incidentally have been seconded by the CSIS report.

Both countries could explore legal options that respect Canada’s democratic values and address India’s security concerns by strengthening extradition protocols within the ambit of human rights obligations. India, on the other hand, should acknowledge Canada’s legal framework regarding freedom of speech. While raising issues that concern its national security, India should learn to ignore the senseless rhetoric of these fringe elements. Transparent communication between the two countries is imperative to dispel misunderstandings and prevent the radicalisation of diaspora communities.

Re-establishing high commissions and creating structured dialogue mechanisms focused on security concerns can help both nations address grievances constructively. Private, high-level diplomatic engagements rather than public escalations like the one done by Trudeau in Nijjar’s case can strengthen bilateral relations. Separating the Khalistan issue from other areas of cooperation, such as trade and technology, can prevent diplomatic breakdowns. Focusing on mutual economic interests, particularly at a time when both countries are affected by the US President’s tariff war, could benefit both.

Ultimately, India and Canada share compelling incentives to maintain a constructive partnership. Through diplomatic finesse, legal collaboration, and community engagement, both nations can navigate these challenges, reinforcing their bond against divisive forces.