Canada’s Spy Agency Sounds Alarm on Khalistani Extremists, Signaling Thaw with India

For years, India has raised concerns about Canada serving as a safe haven for Khalistani extremists, and now, Canada’s own intelligence agency has confirmed these fears. In a significant shift, the Canadian Security Intelligence Service (CSIS) has publicly acknowledged that a small but militant group of Sikh extremists in Canada are actively using the country as a base to promote, fund, and plan violence aimed at India, specifically to push for an independent Sikh state called Khalistan. 

This admission, part of the CSIS’s annual report to Parliament, marks a pivotal moment in India-Canada relations, which have been strained over accusations and counter-accusations. This acknowledgment validates long-standing concerns and could pave the way for stronger cooperation between the two nations, although it is too soon to tell.

Extremism, A Long-Standing Concern for India

India has consistently flagged the issue of Khalistani extremism operating from Canadian soil, pointing to activities that threaten her national security. The CSIS report, released in June 2025, explicitly states, “Khalistani extremists continue to use Canada as a base for the promotion, fundraising or planning of violence primarily in India.” 

This is the first time since 2018 that CSIS has highlighted this issue in its annual report, signaling a possible change in Canada’s approach to addressing India’s concerns. The report emphasizes that these extremists are a small fraction of the Sikh community in Canada.

The acknowledgment comes at a time when India has been vocal about the need for Canada to curb anti-India activities. The 1985 Air India bombing, Canada’s deadliest terrorist attack that killed 329 people, remains a painful reminder of the consequences of unchecked extremism. India has long argued that Canada’s lenient legal system has allowed Khalistani groups to operate freely.

Strained Ties and the Nijjar Controversy

The India-Canada relationship hit a low point in September 2023 when then-Prime Minister Justin Trudeau accused the Indian government of involvement in the killing of Hardeep Singh Nijjar, a Canadian citizen and prominent Khalistan advocate, in British Columbia. India strongly denied these allegations, calling them “absurd” and “motivated,” and stated that Canada was sheltering anti-India extremists. 

The situation escalated further in October 2024 when Canada expelled six Indian diplomats, labeling them “persons of interest” in the Nijjar investigation. India retaliated by recalling its diplomats and expelling Canadian officials.

A Diplomatic Thaw at the G7 Summit

Despite the tensions, recent developments indicate a desire to mend ties. At the G7 Summit in Kananaskis, Alberta, in June 2025, Indian Prime Minister Narendra Modi met with Canadian Prime Minister Mark Carney. The leaders agreed to restore diplomatic relations by appointing new high commissioners and resuming trade negotiations. This meeting, followed closely by the CSIS report’s release, suggests Canada may be taking India’s concerns more seriously.

Here Is What Else You Need To Know

Few weeks ago, former Canadian PM Stephen Harper, said that Canadian political parties should sever ties with Sikh extremists. "Those political parties cannot have a strong relationship with India unless they sever relations with those who seek to bring the battles of India's past to Canada, and sever relations with those who seek to divide the great country that is modern India," he said, according to Canadian media. 

"There is no reason why countries like Canada and India cannot be those enlightened voices working together, which we can do and should do by putting our recent disputes behind us," he added.

Few weeks ago, Canada's Peel Regional Police cracked down on a big narco-terrorism network which reportedly operated in the Greater Toronto Area.  The narco-terrorism network had ties with Sikh extremists. The police seized around $50 million in cocaine. 

Back in 2023, the Bloom Review which was commissioned by the British government, warned the UK government that “The subversive, aggressive and sectarian actions of some pro-Khalistan activists and the subsequent negative effect on wider Sikh communities should not be tolerated.”