The stakes for both countries is high as the rift over allegations that India ran a campaign to intimidate Sikh separatists in Canada deepens.

India and Canada do not see diplomatic fallout over the murder of a Sikh separatist leader having any immediate impact on bilateral trade ties, government officials from the two countries said. Canada exports primarily minerals,

India-Canada diplomatic tensions escalate as trade remains stable at $8.4 billion in 2023-24. Experts warn that prolonged conflict could harm both nations' economic ties, with Canadian investments in India exceeding $75 billion.