On September 10, 2025, new revelations and mounting tensions have brought renewed attention to the complex interplay between diaspora activism, religious agitation, and the fragile ties binding India, Canada, and the United States. Recent Canadian government reports and rising anti-Hindu agitation in North America have sparked fears that old grievances and new political realities could undermine strategic partnerships and social cohesion in these countries.
According to Canadian Department of Finance research, Canada has, for the first time, openly acknowledged being a sanctuary for Khalistani terrorist groups such as Babbar Khalsa, the International Sikh Youth Federation, and Sikhs for Justice. This admission, long suspected by Indian authorities and diaspora observers, comes amid a broader assessment of terrorism financing in Canada. The government’s report highlights that these groups are "suspected of raising funds in multiple countries, including Canada," employing a variety of methods—everything from crowdfunding and cryptocurrency to the misuse of money service businesses, banks, charities, and even criminal activities like drug trafficking and auto theft.
While the report notes that the once-extensive fundraising networks of these groups have dwindled, it cautions that a handful of individuals continue to support the Khalistan cause, often without formal ties to any organization. The misuse of the non-profit sector and donations from immigrants has also come under scrutiny. The report states, "These groups once had a large fundraising network across Canada but now consist of a few individuals who support the cause without specific ties to any group." The methods, however, remain sophisticated, with extremist groups "employing various funding methods to support their operations, including the misuse of MSB and banking sectors, cryptocurrencies, state finances, the charitable and NPO sector, and criminal activities."
This official recognition arrives at a delicate moment. During the recent G-7 summit, Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi emphasized the urgent need to mend bilateral ties, yet Ottawa stopped short of promising concrete action against Khalistan supporters. The lack of a firm commitment has fueled skepticism in India, where many view Canada as turning a blind eye to activities that target Indian interests.
The issue is further complicated by the lived experiences and political dynamics within the Sikh diaspora. Many Sikhs in Canada and the UK, shaped by memories of partition-era violence, the 1984 Golden Temple assault, and other attacks, use their voices to express concerns and advocate for justice. Yet, as Surjit Singh Flora, a journalist based in Brampton, Canada, notes, "People who are in Canada, the UK, and other countries are debating making Khalistan in Punjab, but people of Punjab don’t want it. So, this Khalistan thing is never going to happen." Flora and others argue that the movement is largely driven by a small group of diaspora activists seeking political notoriety, rather than any real grassroots support in Punjab itself.
Despite these assertions, the presence of Khalistani militants in Canada is well documented. Videos, witness testimonies, and media reports all point to ongoing activity, even as the Canadian government has been accused of inaction. Former Prime Minister Justin Trudeau, in particular, faced criticism for ignoring terrorist activities against India, and now attention has shifted to his successor, Mark Carney, to see whether he will address the issue more decisively.
Meanwhile, across the border in the United States, a different but related set of tensions is brewing. According to a recent analysis by GIS Reports Online, anti-Hindu activism in America is on the rise, threatening to destabilize U.S.-India relations at a time when both countries are seeking to counter Chinese influence in the Indo-Pacific region. The article draws parallels between anti-Hindu agitation and the global campaigns of antisemitism and anti-Zionism, warning that "fueling religious and ethnic hatred is an enduring tool of statecraft for both aggressive foreign policy and efforts to destabilize domestic solidarity."
The strategic partnership between the U.S. and India has already suffered setbacks, including the breakdown of trade talks, disputes over India’s oil trade with Russia, and U.S. responses to India-Pakistan conflicts. While these bumps in the road are not expected to cause a permanent rupture, they highlight vulnerabilities that could be exploited by those seeking to undermine cooperation. The article points out that the Indian-American population—now over 5 million strong—represents a rising political force, yet remains largely liberal and secular, with only modest shifts toward conservative candidates like Donald Trump.
Hindu nationalism, or Hindutva, which underpins India’s ruling Bharatiya Janata Party (BJP), has limited formal engagement with the American conservative movement. This lack of coordinated advocacy has left the Hindu-American community relatively unprepared to counter targeted disinformation and hate campaigns. The report notes, "Anti-Hindu rhetoric and activities targeting Indian Americans and India have not been considered a significant issue until recently. Most anti-Hindu activity in the U.S., against both people and places of worship, is more aimed at Hindutva or Hindu nationalism." Incidents include media and academic bias, attacks on temples, and online disinformation.
Efforts to counter anti-Hindu agitation have often borrowed strategies from the fight against antisemitism, such as education campaigns and security grants for religious institutions. However, these measures have met with limited success. The U.S. Federal Bureau of Investigation’s 2024 data showed that antisemitic hate crimes represented 70 percent of all reported religion-based hate crimes, highlighting the scale of the challenge and the inadequacy of current responses for minority groups.
These religious tensions are not confined to the U.S. In November 2024, a violent clash erupted between Sikh separatist activists and Hindu nationalist supporters in Brampton, Canada, underscoring the potential for diaspora conflicts to spill over into local communities. According to The Guardian, "members of the local community say they fear further violence between Sikh separatist activists [Khalistani movement] and Modi supporters, some of whom espouse Hindu nationalist ideologies." Such incidents illustrate how diaspora politics can inflame divisions and create ripple effects far beyond South Asia.
At the international level, both Pakistan and China are seen as potential beneficiaries of these divisions, with the possibility that anti-Hindu agitation could be weaponized to weaken U.S.-India ties. The treatment of Hindu communities in countries across Asia and Africa could also have broader geopolitical implications, as religious agitation becomes a tool in the contest for influence.
Looking ahead, the future of U.S.-India and Canada-India relations may hinge on the ability of governments and communities to address these challenges head-on. While some hope that renewed trade negotiations and diplomatic engagement could help immunize relationships against the weaponization of religious activism, others warn that without stronger cultural, religious, and political bonds, the risk of further destabilization remains high.
As the world watches, the stakes are clear: how these countries navigate the intersection of diaspora politics, religious identity, and international cooperation will shape not only their own societies but also the broader contours of global security and prosperity.
