Policy Update
Aashvee Prisha
Background
The South Asian diaspora in Canada, a community of nearly two million people, is a foundational element of the bilateral relationship between India and Canada. This community has long served as a “cultural bridge”, profoundly influencing both through political collaboration, economic development, and cultural interchange.
The initial formation of the Indo-Canadian community began in the 19th century, pioneered by Punjabi Sikhs , primarily soldiers and farmers who visited British Columbia on their journey home from a celebration for the Queen’s Diamonds Jubilee in London . A 2025 study of the 1871 Canaria census uncovered a previously unrecognised presence of 11 people of Indian origin in Eastern Canada, challenging the Pacific-centric narrative of early Indian migration and demonstrating that Indians were part of Canadian society decades earlier than previously documented.
Despite being British subjects and a proclamation from Queen Victoria granting “equal privileges with white people without discrimination of colour, creed or race” the community faced severe institutional barriers, discrimination, and extreme xenophobia form the European population. Canadian officials viewed Asian settlers as a “threat to the European nature of Canada”. In response, the government enacted discriminatory laws, such as the continuous journey regulation, which effectively ended immigration for decades. This era of racialised exclusion is exemplified by the Komagata Mati incident, where hundreds of Sikh, Muslim, and Hindu migrants were denied entry to Canada. As a result of these restrictive policies , the Indo-Canadian population declined from over 5,000 in 1908 to a mere 1,100 by the mid-1920s.
There is no single unified “diaspora policy” of India-Canada specifically titled, but there are several immigration, citizenship, multiculturalism, international student, and bilateral/diplomatic measures that shape how the diaspora operates as a cultural bridge. Recently, one key development is Canada’s Bill C-3, proposed in 2025, which seeks to eliminate the first-generation limit on citizenship by descent: i.e. allow Canadian parents born abroad to pass citizenship to their children born or adopted overseas (subject to certain residency criteria). This addresses legal and identity limitations for diaspora families.
Objectives of such legal/policy frameworks or practices include:
- Ensuring continuity of identity and belonging for diaspora generations;
- Enabling transnational ties: culture, education, remittances, trade, diplomacy;
- Facilitating integration into Canadian society in a way that preserves culture rather than erases it;
- Supporting soft power and bilateral relations between India and Canada.
Timeline: The large-scale migration, especially post-1967 (points-based immigration), growth of international students, etc. Citizenship laws have existed but the “first generation by descent” limit introduced earlier (2009) is now being revisited with Bill C-3. Beneficiaries: Indian immigrants, their children born abroad, international students, Canada as host society (multicultural vibrancy), India (diaspora as source of remittances, image, soft power).
The landscape of Indian immigration to Canada changed dramatically in the mid-1960s when the country began to shift towards a policy of multiculturalism, doing away with all discriminatory racial quotas. This policy change led to an immediate and significant influx of immigrants, with the Indian population multiplying more than twenty times within a few years. This period saw the community diversify far beyond its original Punjabi Sikh roots to include a wide array of languages and religions, including Hinduism, Christianity and Islam from all parts of India.
Functioning
The relationship between India and Canada is often analysed through a democracy dyad, which states that shared democratic values facilitate the diaspora’s ability to influence policy and foster cooperation. This framework suggests that when the political activities of the diaspora in one democracy aim to deepen relations with their country of origin, which is also a democracy aim to deepen relations with their country of origin, which is also a democracy these efforts are promoted. The diaspora has evolved to become a component force shaping Canadian policy from within, moving beyond its historical role of influencing immigration from the outside .
However, this political bridge is not without its fault lines. A major challenge is the phenomenon of long-distance nationalism, where some members of the diaspora use Canada’s liberal rights to mobilise support for radical causes in India. This situation forces Canada to balance its democratic principles of free speech and association with national security concerns and a zero-tolerance policy for hate and violence. This is a long-standing point of contention, with India consistently accusing Canada of harbouring extremists and turning a blind eye to anti-India activities.
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Performance
The Indo-Canadian community has experienced remarkable growth, and according to the 2021 census, the Indian population is approximately 1,858,755, constituting 5.1% of the total Canadian population. This community is heavily concentrated in the provinces of Ontario and British Columbia.
The economic narrative has also undergone a profound transformation. The community’s origins are rooted in its role as a source of low-skilled labour for industries like railways and lumber. Today, it is recognized as a community of highly skilled professionals and successful entrepreneurs, with many newcomers arriving with “impeccable English” and experience in “key industries like information technology, science, and medicine”. Their entrepreneurial spirit contributes significantly to job creation, supports tax revenue, and enhances Canada’s multicultural workforce.
The diaspora’s role as an economic bridge extends to the bilateral trade relationship. Bilateral trade was valued at USD 9.36 billion in 2023, reflecting a 53% growth in under a decade. A report from the Consulate General of India in Toronto shows bilateral trade in goods and services for 2024 and up to July 2025. In 2024, total trade was USD 22.54 billion, with India’s exports to Canada at USD 6.86 billion and imports at USD 15.68 billion. For the period up to July 2025, total trade was USD 11.01 billion, with exports at USD 4.14 billion and imports at USD 6.87 billion.
A cornerstone of the economic relationship is the Indian student community, which is the largest group of international students in Canada. With over 800,000 Indian students in Canada in 2022, they contribute billions of dollars annually to the Canadian economy through tuition and living expenses. Canadian pension funds have made significant long-term investments in various Indian sectors, with portfolio investments increasing from US$5 billion to over US$55 billion in the last six years.
Impact
The impact of the South Asian diasporas on Canadian society is evident in cultural fusion and mainstream integration. Indian festivals like Diwali and Holi are now celebrated with great enthusiasm and fervour across Canada, showcasing the richness of Indian culture and providing an opportunity for Canadians from various backgrounds to participate. Temples in major Canadian cities, such as Toronto, function as community hubs, hosting festivals that can attract up to 15,000 people.
Beyond festivals, organisations like the Kabir Centre in Montreal and the Indian Summer Festival in Vancouver actively work to break cultural barriers and promote a pluralistic approach by connecting diverse South Asian voices with mainstream communities. The missions of organisations like the Indian Association reveal a dual purpose: they not only build bridges between the diaspora and mainstream Canadian society but also foster harmony and mutual respect among members of the South Asian diaspora themselves.
Indian cuisine, a more recent addition to the Canadian culinary scene that gained prominence after the 1960s, serves as a powerful symbol of cultural fusion and assimilation. The culinary scene reflects a fusion of Northern and Southern Indian styles, along with Anglo-Indian influences. It has evolved from being perceived as an exotic and spicy food to a familiar comfort food found in local markets and even school lunchboxes.
The influence of Bollywood further strengthens the cultural connection. Hindi cinema has experienced significant revenue growth in Canada and the United States, particularly within the South Asian diaspora. This influence has matured beyond passive consumption, as Canada has become a popular filming location for Indian productions, with over $850 million spent by Indian film companies in 2010. A 2003 co-production agreement has led to an increase in joint projects, and Canadian-born actors of Indian descent, such as Lisa Ray and Neeru Bajwa, have built their careers in both countries, symbolising a shift from mere consumption to active co-creation
Diaspora as Cultural Bridge: Mechanisms and Manifestations
1. Cultural Transmission and Retention:
Festivals (Diwali, Vaisakhi, Eid), food, clothing, music and dance sustain Indian traditions in Canada. Artists like Lata Pada, a Bharatanatyam dancer/choreographer, exemplify how traditional Indian arts adapt and thrive in Canadian contexts.
2. Identity Formation among 2nd/3rd Generation:
The second generation often navigates hybrid identity: balancing “Desi/South Asian/Indian” roots with Canadian values. Studies of identity transmission show both preservation of culture (language, religion) and adaptation into plural Canadian societal norms.
3. Economic and Educational Linkages:
Diaspora members facilitate trade, start-ups, knowledge transfer, and remittances. Indian students in Canadian universities contribute both to the local economy and serve as future bridge-builders.
4. Soft Power and Diplomacy:
Indian diaspora influences Canada’s perception of India; participates in bilateral policy (immigration, cultural funding); India’s cultural diplomacy uses diaspora networks; cultural festivals become a means of public diplomacy.
Emerging Issues
The political bridge remains a source of tension, with issues of long-distance nationalism and foreign interference directly testing Canada’s commitment to balancing democratic freedoms with national security. The health of this vital bridge ultimately depends on both national security. The health of this vital bridge ultimately depends on both nations ability to navigate these complex issues with strategic, collaborative engagement, recognizing that the very community that contributes so much to the relationship is also the one that the very community that contributes so much to the relationship is also the one that is most vulnerable to its fractures.
- Growing Diplomatic Tensions : The relationship has experienced cyclical highs and lows, often exacerbated by issues deeply intertwined with the diasporas. Tensions increased to a critical level with the June 2023 assassination of Hardeep Singh Nijjar, a Canadian citizen and Khalistani leader. Canada’s public accusation of the Indian Government’s involvement and the temporary suspension of visa services by India. The issue is driven by a fundamental ideological challenge : the concept of long-distance nationalism, where members of the diasporas use Canada’s liberal rights to support radical issues in their home country.
- Persistent Racism and Hate: Despite its economic and social success, the South Asian community continues to face systemic racism and discrimination. Four in ten South Asian Canadians report experiencing discrimination regularly due to their ethnicity or race. Reports indicate a steep rise in hate towards South Asians on Social media, with police reported hate crimes against the community increasing by over 200% between 2019 and 2023.
- Mental Health Stigma: The model minority stereotype puts immense pressure on second-generation youth to achieve academic and professional success to uphold family prestige within the community, causing significant intergenerational tension. Furthermore, the South Asian diaspora shows a greater apprehension towards mental illness due to cultural taboos and collectivist values, which can create a Courtesy stigma that deters individuals from seeking help for fear of shaming their family or community.
Policy Implications & Recommendations
India
Enhance diaspora engagement, develop more nuanced diaspora policy recognising generational differences; support cultural and educational exchange programs; incentives for diaspora business investment; use soft-power through art, film, and literature.
Canada
Foster inclusive multiculturalism & use diaspora for bilateral benefit. Support multicultural policies that give space to cultural expression; invest in community cultural centres; recognise diaspora contributions in trade and innovation; enforce anti-discrimination enforcement; education curriculum inclusive of South Asian history.
Joint / Bilateral. Institutionalised Dialogue. Create joint commissions on diaspora affairs; cultural diplomacy (festivals, art shows, youth exchanges); scholarship programs; co-funding arts and culture with diaspora involvement; streamline visa, immigration, and bilateral student policies to reduce friction.
Case Studies
- Gerrard India Bazaar (“Little India”), Toronto: A commercial/cultural enclave which not only serves South Asian communities but acts as a tourist/educational site, hosting festivals like the Festival of South Asia that draw diverse audiences.
- Recreation of religious rituals abroad: Recent events like NRIs in Mississauga recreating Ganga Aarti show how diaspora actively recreates spiritual practices abroad, reinforcing connections to religious heritage, even as debates around authenticity, environmental impact, or adaptation emerge.
Way Forward
The South Asian diaspora in Canada stands as the central and most consequential force in the India-Canada relationship. The community has transformed from a marginalised group facing racialised exclusion into a dynamic economic and cultural powerhouse that is fundamentally reshaping the Canadian identity. The report’s analysis confirms that the cultural bridge is not a simplistic, one-way connection but a sophisticated, multilayered system that, despite its fault lines, has proven to be incredibly resilient. The economic relationship, driven by trade, investment and the student community, has demonstrated a surprising ability to withstand political volatility.
However, the long-term health of this vital bridge depends on both nations’ ability to navigate these complex issues with strategic collaborative engagement. The recent diplomatic rapprochement, including the reappointment of high commissioners and renewed security cooperation, indicates a cautious and measured approach to resetting the relationship. This pragmatic path forward should focus on leveraging shared concerns while protecting the rights and the freedoms of the diaspora, that is so vital to both countries. The long TER. The health of this partnership will be determined by whether it can foster an environment where the diaspora’s success and contributions are celebrated, while also proactively addressing the underlying challenges of racism, identity and political discord.
References
Canadian Indian Association – Of Halton Region (C.I.A.). (n.d.). Canadian Indian Association – Of Halton Region. https://canadianindianassociation.com/
CIC News. (2014, April 14). The story of Indian immigration to Canada. https://www.cicnews.com/2014/04/story-indian-immigration-canada-043365.html
Consulate General of India, Toronto, Canada. (n.d.). India–Canada trade. https://www.cgitoronto.gov.in/page/india-canada-trade/
Environics Institute for Survey Research. (2025, July 3). South Asian experiences with racism in Canada. https://www.environicsinstitute.org/insights/insight-details/south-asian-experiences-with-racism-in-canada
Indian Society of Calgary. (n.d.). Indian Society of Calgary. https://calgaryindians.org/
High Commission of India, Ottawa, Canada. (n.d.). High Commission of India, Ottawa (Canada). https://hciottawa.gov.in/
Indo-Canada Chamber of Commerce. (n.d.). Indo-Canada Chamber of Commerce – Diaspora corner.https://indoccc.com/diaspora-corner/
About the Author
Aashvee Prisha is a Research Intern at IMPRI. She is currently pursuing her undergraduate degree in Political Science, with a deep interest in international relations, gender diplomacy, and digital storytelling.
Acknowledgement
The author sincerely thanks Ms. Aasthaba Jadeja for her invaluable mentorship and guidance during the development of this article. Special thanks are also extended to her fellow IMPRI interns for their thoughtful inputs, support, and camaraderie throughout the process.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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