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Canada’s K-terror funding enquiry is welcome, but India needs action
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  • Canada’s K-terror funding enquiry is welcome, but India needs action

Canada’s K-terror funding enquiry is welcome, but India needs action

Abhinav Pandya • September 9, 2025, 13:56:13 IST
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Ottawa’s admission of Khalistani extremists operating from its soil is a welcome development, particularly after a troubled phase of the bilateral relationship under the Trudeau government. However, mere words, reports, and assurances will not make much difference

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Canada’s K-terror funding enquiry is welcome, but India needs action
The Canadian government will have to show its seriousness by taking firm action against Khalistani and anti-India entities if it wants a strong bilateral relationship. Image: Reuters

In its assessment report on terror financing and money laundering, the Canadian government’s finance department has, for the first time, acknowledged that Khalistani terrorist groups raised terror funds from several countries, including Canada. It is indeed an open secret that Khalistani extremist groups like Babbar Khalsa International, Sikhs for Justice, and the International Sikh Youth Federation have been operating from Canadian soil for decades now, in a politically congenial setting.

Ottawa’s admission of this is crucial to the diplomatic ties between the two countries. Notably, the report also discusses the links between Canada and other terrorist groups like Hamas and Hezbollah, listed under the category of Politically Motivated Violent Extremism.

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Undoubtedly, these revelations bring forth how religious extremists and radicals have abused Canadian democracy and the cultural norms of open and free Western societies to deepen and strengthen their presence and use Canadian soil to perpetuate their terrorist activities.

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However, the recent admission raises critical questions about the Justin Trudeau government’s handling of diplomatic ties with India. The Trudeau government was supported by pro-Khalistani Jagmeet Singh’s New Democratic Party.

Justin Trudeau’s anti-India political stance and sympathies with anti-India religious extremists were in complete disregard of the diplomatic nuances that shape the contours of a bilateral relationship. Indian agencies had to face fabricated and false allegations of involvement in the murder of a Khalistani extremist, Hardeep Singh Nijjar.

In a complete disregard of India’s geostrategic importance to the West and the image of a functional, effective, and credible democracy, the Trudeau government, motivated by a whimsical hatred, left no stone unturned in ruining diplomatic ties with India. Violating protocols, they snooped on the mobile phones of Indian diplomats, subtly allowing the anti-India Islamist and Khalistani extremists to function and pursue anti-India propaganda.

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Finally, the bilateral ties nosedived. In October 2024, India withdrew its High Commissioner to Canada, Sanjay Verma, citing safety concerns amidst the environment of ‘extremism and violence’ fuelled by the Trudeau government. The MEA criticised Trudeau for fostering an environment where extremists could “harass and threaten Indian diplomats” and condemned Canada’s history of fast-tracking citizenship for individuals linked to illegal activities.

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The MEA’s statement read, “To that end, the Trudeau Government has consciously provided space to violent extremists and terrorists to harass, threaten, and intimidate Indian diplomats and community leaders in Canada. This has included death threats to them and to Indian leaders. All these activities have been justified in the name of freedom of speech. Some individuals who have entered Canada illegally have been fast-tracked for citizenship.” Following that, India also expelled six Canadian diplomats, explicitly stating that the Canadian High Commission in India was working to promote the political agenda of the Trudeau government.

Today, when the Canadian government admits that the Khalistani extremists raised funds for anti-India activities on Canadian soil, India stands vindicated, and the Trudeau government’s alleged links with and sympathies for Khalistani extremists stand exposed. The Canadian government’s report discusses in detail how Khalistani terrorists are misusing charities, non-profits, and donations from expatriates. They are also raising funds using other methods like narco-trafficking and auto theft.

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The report further observes that “These groups previously had an extensive fundraising network in Canada but now appear to consist of smaller pockets of individuals with allegiance to the cause but seemingly no particular affiliation to a specific group.” Furthermore, they use cryptocurrencies, crowdfunding, MSBs (money service businesses), criminal networks, state financing, and the Non-Profit Organisation (NPO) sector to raise terror funds.

Before this, last year, after PM Narendra Modi’s meeting with the Canadian PM Mark Carney at the G7 meeting, the CSIS, the Canadian intelligence service, in its annual report, categorically stated that “Khalistani extremists continue to use Canada as a base for the promotion, fundraising or planning of violence primarily in India”.

Besides, in May 2024, a parallel investigation by the CSIS and the National Security and Intelligence Committee of Parliamentarians (NSICOP) raised serious concerns about Pakistan’s interference in Canada through links with Islamist groups and attempts to influence democratic institutions.

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For decades, Khalistanis have used Canadian soil to plot terrorist violence against India. The case of the Kanishka bombing continues to haunt the Indian security establishment. Besides, over the last three decades, a range of Islamist and Kashmiri activists and anti-India civil society groups have firmly entrenched themselves in Canada.

In India, it is a common trend among criminal and terrorist elements to seek refuge in Canada after committing a crime in India. The result is evident in the form of a large number of Indian Punjabi gangs, drug smugglers, and Khalistani terrorists operating from Canadian soil. These elements have built a strong influence in Canadian politics.

Justin Trudeau’s government, supported by Khalistani activists, is a clear example of this. His government was a mute spectator of highly provocative and disturbing anti-India activities and propaganda. However, the Modi government has adopted a zero-tolerance policy towards terror, be it inside India or outside. New Delhi’s signalling to Ottawa has been firm and clear—any support to anti-India elements will not be taken hands down, and India will give a befitting reply to protect its national interests.

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Against this backdrop, Canada’s admission of Khalistani extremists operating from its soil is a welcome development, particularly after a troubled phase of the bilateral relationship under the Trudeau government. However, mere words, reports, and assurances will not make much difference.

The Canadian government will have to show its seriousness by taking firm action against Khalistani and anti-India Islamist entities if it wants a strong bilateral relationship with the world’s largest democracy. Whether Ottawa will go ahead or not remains yet to be seen.

The author is a Cornell University graduate in public affairs, bachelors from St Stephen’s College, Delhi and has done his PhD on Jaish-e-Mohammad. He is a policy analyst specialising in counterterrorism, Indian foreign policy and Afghanistan-Pakistan geopolitics. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost’s views.

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