India and Canada had begun taking cautious steps towards repairing their battered relationship after a year of deep diplomatic strain. The two sides recently agreed to restart trade negotiations and work towards a major economic partnership. However, a controversial Khalistan referendum held in Ottawa now threatens to reopen old wounds and complicate the fragile reset.
The vote, organised by the outlawed Sikhs for Justice group, took place on Sunday and saw large participation from members of the Sikh diaspora in Canada. Videos from the event showed participants raising pro Khalistan slogans and issuing violent chants against India. Some supporters were also seen desecrating the Indian national flag.
For New Delhi, the event reinforces a long-standing concern that extremist separatist elements are operating freely on Canadian soil under the garb of free expression.
What is the Khalistan referendum
The event was organised by Sikhs for Justice, a group banned by India under the Unlawful Activities Prevention Act for its subversive and anti-national activities. SFJ has been running a campaign for a separate Sikh homeland called Khalistan and regularly holds symbolic referendums in different parts of the world.
According to Canadian media outlet CBC News, this was the seventh such vote held by the group in Canada since 2022. Earlier rounds were organised in cities such as Brampton, Surrey, Mississauga and Calgary.
This time, SFJ claimed that over 53,000 Sikhs from Ontario, Alberta, British Columbia and Quebec took part in the Ottawa vote. The group said participants stood in queues stretching over two kilometres.
“From new-born children to seniors using walkers, families remained in line all day. Thousands were still waiting when the 3 pm closing time arrived, and voting continued to ensure they could cast their ballots,” the group was quoted as saying.
SFJ’s general counsel Gurpatwant Singh Pannun, who is designated as a terrorist by India, addressed those present through a satellite message.
India calls referendum farcical
India reacted strongly to the referendum, calling it a misleading and provocative exercise that interferes in its internal affairs. Indian High Commissioner to Canada Dinesh Patnaik described the event as meaningless and politically motivated.
“You people know what a referendum is. You have done referendums in the past. You know how farcical this is. Referendums have a certain process. This is a referendum by Canadians done in Canada. If you want to do it, do it.”
“The problem that happens is that back home in India they see this as Canadian interference in India as Canadians see anything as Indian interference in Canada. That’s something Canada has to think about.”
Patnaik stressed that India has no objection to peaceful political expression but drew a clear line when it comes to promoting separatism and violence against the Indian state.
Timing raises red flags for New Delhi
What makes this referendum even more sensitive is the timing. It was held on the same day that Indian Prime Minister Narendra Modi met Canadian Prime Minister Mark Carney on the sidelines of the G20 Summit in Johannesburg.
The meeting was widely seen as an attempt to move past the bitter fallout that followed the killing of Khalistan figure Hardeep Singh Nijjar in 2023 and the subsequent allegations made by former Canadian Prime Minister Justin Trudeau against Indian agencies.
When asked about the coincidence, Canadian Foreign Minister Anita Anand said the timing was not intended to hurt any interests.
“The meeting has been contemplated for some time and it happens to be falling on the Sunday without an intention to undermine or hurt any interest domestically.”
“And so I want to say at the forefront of every conversation is going to be the focus on the law enforcement matters, the law enforcement dialogue [and] the issues of public safety and security at home.”
For India, however, the optics are troubling. At a moment when both countries are working to ease tensions, allowing a banned extremist group to organise such an event sends mixed signals about Canada’s seriousness in addressing India’s security concerns.
Trade breakthrough now under shadow
Just hours before the referendum controversy, India and Canada had announced a significant breakthrough in economic relations. Both sides agreed to launch negotiations on a Comprehensive Economic Partnership Agreement with the aim of doubling bilateral trade to $50 billion by 2030.
According to the Indian Ministry of External Affairs, discussions will also involve strengthening civil nuclear cooperation and exploring long-term uranium supply arrangements. This marked the first major positive development since trade talks were frozen during the Trudeau government.
For New Delhi, this progress was a sign that Ottawa was willing to re-engage in a constructive and pragmatic manner. The referendum now risks undermining that momentum.
Why India sees this as more than free speech
India’s position has remained consistent. It maintains that Khalistan activism on foreign soil is not merely an expression of opinion but a threat to national unity and internal security. The presence of violent slogans and open glorification of separatist ideology deepens that concern.
New Delhi has repeatedly flagged that its displeasure lies not with the Sikh community but with extremist elements who misuse democratic freedoms to push divisive agendas.
The latest event reinforces India’s view that Canada must do more to prevent its territory from becoming a hub for anti-India activities that glorify violence or separatism.
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