What can India do if Canada applies sanctions? Shiv Aroor explains


The diplomatic tensions between India and Canada have intensified dramatically in recent weeks, particularly following serious allegations made by Canadian Prime Minister Justin Trudeau against New Delhi. Trudeau claimed that the Indian government was involved in promoting criminal activities on Canadian soil, a statement that has raised significant concerns among various stakeholders in both nations. This shocking assertion has led to a rapid escalation of hostilities, with both countries taking the drastic step of expelling each other's high commissioners. This unprecedented diplomatic fallout reflects a deeper rift that has been developing over time, with far-reaching implications for both nations.

In light of these escalating tensions, Canada’s Foreign Minister Mélanie Joly has publicly indicated that "everything is on the table" regarding potential sanctions against India. This statement has raised eyebrows and sparked discussions within diplomatic circles about the potential consequences of such actions. If Canada ultimately decides to impose these sanctions, India has several viable options for retaliatory measures that could exacerbate the already strained relations between the two countries.

One of the most impactful strategies India could employ involves restricting the nearly **250,000 Indian students currently enrolled in Canadian educational institutions**. These students represent a vital component of Canada’s education sector, contributing significantly to the financial stability of universities and colleges across the country. The influx of international students from India not only enhances cultural diversity but also adds billions of dollars in tuition fees to the Canadian economy. If India were to bar these students from studying in Canada, it could lead to severe financial repercussions, potentially destabilizing entire educational programs and causing long-term damage to Canada’s international reputation as a top study destination.

In addition to this, India might consider taking a firm stance by **revoking Overseas Citizen of India (OCI) cards** held by Canadian citizens of Indian origin who are perceived to have links with pro-Khalistan movements. This action could create a significant impact on individuals who identify strongly with their Indian heritage while living in Canada. The revocation of OCI cards would not only affect these individuals' ability to travel to India but could also provoke feelings of alienation and resentment within the broader Indian diaspora community in Canada.

Another potential measure that India could take involves **suspending property rights** for those individuals identified as supporters of the Khalistani movement. This could entail increasing scrutiny on property ownership and delaying the issuance of new visas for such individuals. By implementing these measures, India could apply considerable pressure on supporters of this separatist movement to reconsider their affiliations and actions. The implications of this could resonate beyond individual cases, influencing the behavior of broader networks within the Canadian political landscape.

Furthermore, India could consider **suspending multiple-entry visas** for Canadian citizens of Indian descent who are believed to hold anti-India sentiments. Such a move would likely provoke backlash from the Canadian Indian community, potentially influencing domestic politics in Canada, especially as the country gears up for upcoming elections. The growing tension could create divisions within the community, complicating the political landscape for Canadian politicians who rely on the support of this demographic.

From an economic perspective, India may also opt to **impose trade sanctions** against Canada, a move that would mirror the potential sanctions being contemplated by Ottawa. Given India’s status as one of Canada’s top ten trading partners, implementing such sanctions could have far-reaching consequences for Canada’s economy. It could disrupt existing supply chains that depend on Indian goods and services, lead to increased prices for consumers, and ultimately impact the broader economic climate within Canada. The trade imbalance currently favors India, and any retaliatory measures could exacerbate this economic strain.

Lastly, India might choose to **freeze assets held by Canadian financial institutions and pension funds** that have investments in India. While this option may seem extreme and is unlikely to be implemented due to the potential backlash it could provoke, it serves to illustrate the serious consequences that could arise from continued diplomatic hostilities. Such actions could lead to a chilling effect on foreign investment and further strain economic ties between the two nations.

As both India and Canada navigate this increasingly fraught diplomatic landscape, the potential consequences of their actions could resonate across multiple sectors, including education, immigration, and trade. The ongoing situation underscores the complexity of international relations and the intricate web of dependencies that can quickly become frayed under the pressures of political discord. With both nations standing firm in their positions, the future of their bilateral relationship hangs in the balance, and the next steps taken by either government could very well determine the trajectory of India-Canada relations for years to come. The global community will be watching closely, as the repercussions of this diplomatic crisis extend beyond the two countries, potentially impacting international relations on a broader scale.


 

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