Big reset in India Canada relations: Canada designates Khalistani extremists ‘national security threat’

In a significant shift that echoes long-standing Indian concerns, Canada’s intelligence agency has officially described Khalistani extremists as a “national security threat”, acknowledging that some individuals linked to the movement are using Canadian institutions to advance a “violent extremist agenda”. 

The assessment, published in the Canadian Security Intelligence Service (CSIS) 2025 Public Report, marks one of the clearest public recognitions by Ottawa’s security establishment about the dangers posed by Canada-based Khalistani extremist (CBKE) networks. 

Under Prime Minister Mark Carney, who assumed office last year, Ottawa has shown signs of attempting a diplomatic reset with India. Both countries have cautiously resumed engagement, with officials signalling interest in rebuilding trade, security and strategic cooperation. 

The report stated that the involvement of CBKEs in violent activities “continues to pose a national security threat to Canada and to Canadian interests.” 

It further warned that some extremists are “well connected to Canadian citizens” and exploit Canadian institutions to raise funds and support activities linked to violence, particularly in India. 

Air India bombing reference revives painful history 

The report gains added significance as it comes nearly four decades after the bombing of Air India Flight 182 — the deadliest terror attack in Canadian history. 

The 1985 bombing killed 329 people, most of them Canadians of Indian origin, and investigators linked the attack to Khalistani extremists operating from Canada. 

CSIS said the anniversary was a reminder that extremist violence linked to the Khalistan movement had already left a deep scar on Canada’s own national security landscape. 

At the same time, the agency attempted to draw a distinction between violent extremism and political advocacy, saying peaceful support for Khalistan does not amount to extremism under Canadian law. 

“Only a small group of individuals who use Canada as a base to promote, fundraise, or plan violence primarily in India are considered Khalistani extremists,” the report said. 

India-Canada ties deteriorated sharply under Justin Trudeau 

The report is likely to be viewed in New Delhi as validation of concerns India repeatedly raised during the tenure of former Canadian Prime Minister Justin Trudeau. 

India-Canada relations plunged to historic lows in 2023 after Trudeau publicly alleged a “potential” involvement of Indian agents in the killing of Khalistani separatist Hardeep Singh Nijjar in British Columbia. 

India strongly denied the allegations, calling them “absurd” and “politically motivated”. The diplomatic fallout triggered expulsions of diplomats, suspension of trade talks, visa disruptions and a freeze in high-level political engagement. 

New Delhi had repeatedly accused the Trudeau government of being soft on Khalistani elements operating openly in Canada. Indian officials argued that extremist groups were being allowed to organise rallies, issue threats against Indian diplomats and glorify violence under the guise of free speech. 

Khalistani angle became a political flashpoint 

The Khalistan issue also became politically sensitive within Canada because several Sikh politicians held influential positions in Trudeau’s government and the ruling Liberal Party. 

Critics in India frequently pointed to the political dependence of Trudeau’s minority government on Sikh community support in key constituencies, arguing that Ottawa avoided taking tougher action against radical elements for domestic political reasons. 

While the majority of Sikh Canadians do not support violence or extremism, Indian officials consistently differentiated between the broader Sikh community and small extremist factions advocating separatism. 

The new CSIS report appears to acknowledge that concern more explicitly than previous public assessments.