Canada's Security Intelligence Service (CSIS) has released its 2025 report on foreign interference, listing India among five nations—alongside China, Pakistan, Russia, and Iran—alleged to conduct espionage and influence operations on Canadian soil. While the report asserts that India has historically cultivated covert relationships with Canadian politicians, journalists, and members of the Indo-Canadian community to advance its interests, it notably refrains from referencing the 2023 killing of Khalistani separatist Hardeep Singh Nijjar or accusing India of escalated repression, both of which featured prominently in last year's assessment. This measured tone reflects ongoing diplomatic efforts to mend ties following a prolonged bilateral downturn.

The report details how Indian-linked transnational repression activities have included surveillance and coercive tactics aimed at silencing dissent within diaspora communities. However, it stops short of attributing specific operations to Indian state actors in the current period, instead framing past actions within a 'historical' context. This shift suggests a deliberate move by Canadian intelligence to avoid further inflaming diplomatic tensions at a time when Prime Minister Mark Carney is actively working to stabilize relations with New Delhi, including a recent visit to India aimed at resetting engagement across trade, technology, and security domains.

Concurrently, the CSIS report highlights the growing threat from Canada-based Khalistani extremists, identifying individuals and networks that exploit Canadian institutions to promote violent agendas and divert funds toward extremist activities in India. These actors, the report states, use Canadian soil to plan, fundraise, and incite violence, primarily targeting Indian interests. This emphasis aligns closely with India's longstanding position that certain elements within the Sikh diaspora operate with insufficient oversight, and it provides New Delhi with a degree of strategic validation amid broader accusations of foreign interference.

The dual focus—on historical Indian influence operations and current extremist threats from Khalistani groups—reflects a nuanced recalibration in Canada's security posture. It allows Ottawa to maintain scrutiny over foreign state behavior while acknowledging domestic vulnerabilities that India has consistently raised. Looking ahead, this balanced assessment could facilitate deeper bilateral cooperation on counterterrorism and intelligence-sharing. However, the underlying challenges—diaspora politics, sovereignty concerns, and divergent legal frameworks—will likely persist, requiring sustained diplomatic engagement to prevent future ruptures.