From Denial to Recognition: Canada and the Khalistani Threat
Author: Nijees N
Research Associate, Institute for Conflict Management
The 2025 Public Report of the Canadian Security Intelligence Service (CSIS), released on May 1, 2026, marks a significant shift in Canada’s understanding of Khalistani extremism and its implications for national security. For years, the issue of Khalistani activities in Canada was largely viewed through the prism of India-Canada diplomatic tensions. However, the latest CSIS assessment reframes the challenge as a domestic security concern, acknowledging that Canada-based Khalistani extremists (CBKEs) continue to pose a threat not only to India, but also to Canada and Canadian interests.
In its report, CSIS categorizes such activities under Politically Motivated Violent Extremism (PMVE) and states that a small but active network of individuals continues to use Canadian soil to promote, finance, and plan violent activities. According to the report, some extremist elements exploit Canadian institutions and unsuspecting members of the Sikh community to channel funds and support toward violent causes. While the report carefully distinguishes between peaceful advocacy for Khalistan and violent extremism, it nevertheless recognizes that extremist networks have historically operated in the grey area between protected political expression and operational planning.
A notable feature of the report is its reference to the 40th anniversary of the 1985 Air India Flight 182 bombing, the deadliest terrorist attack in Canadian history, which killed 329 people, most of them Canadians. By recalling the bombing, CSIS emphasizes that Khalistani-linked violence is not merely an external problem tied to India, but a threat that has previously targeted Canada itself. The inclusion of this historical reminder reflects a growing realization within Canadian security circles that the consequences of ignoring extremist networks can be severe and long-lasting.
This shift in approach is particularly important when viewed against Canada’s earlier position. In 2019, under the government of then-Prime Minister Justin Trudeau, references to “Sikh (Khalistan) extremism” were removed from Canada’s public terror threat report following pressure from pro-Khalistani groups. For many years, India repeatedly accused Canada of providing safe haven to separatist leaders, extremist financiers, and gang-linked operatives associated with Khalistani networks. Ottawa, however, often avoided publicly acknowledging the scale of the issue.
The change became visible in CSIS’s 2024 annual report, released in 2025, which explicitly admitted for the first time that Khalistani extremists were using Canadian territory to support violent activities directed primarily against India. The 2025 report builds further upon this recognition and is reinforced by Canada’s Money Laundering and Terrorist Financing Risks Assessment, which identified banned organizations such as Babbar Khalsa International (BKI) and the International Sikh Youth Federation (ISYF) as recipients of extremist-linked funds originating in Canada.
These findings also influenced legislative action. In March 2026, the Canadian Parliament passed the Combating Hate Act (Bill C-9), criminalizing the public display of symbols associated with listed terrorist organizations when used to promote hatred. The legislation specifically targeted imagery and propaganda connected to extremist groups like BKI and ISYF. Such measures indicate that Canadian authorities are increasingly willing to address extremist symbolism and financing networks more directly than before.
Recent violent incidents have further intensified concerns about the intersection of Khalistani extremism, organized crime, and transnational gang activity in Canada. In May 2026, Simranjit Singh, also known as “Sam Canada,” an alleged associate of the Lawrence Bishnoi gang, was killed in a targeted shooting in Surrey, British Columbia. Investigators reportedly examined possible Khalistan-linked angles to the case. Earlier, in March 2026, Punjabi-origin social media influencer Nancy Grewal, known for criticizing Khalistani extremism online, was fatally stabbed in Ontario. Extremist-linked social media accounts allegedly claimed responsibility, warning others against opposing the Khalistan movement.
Such incidents reflect a broader pattern of rising organized violence involving Punjabi-origin gang networks operating across Canada. According to available monitoring data, several Indian-origin individuals have been killed in targeted attacks linked to gang rivalries and extremist connections in recent years. In response, the Canadian government formally designated the Lawrence Bishnoi gang as a terrorist entity in September 2025.
Beyond targeted killings, Canada has also witnessed repeated attacks on Indian diplomatic missions, Hindu temples, Punjabi musicians, and businesses associated with anti-Khalistan positions. Pro-Khalistani mobilization has frequently led to counter-protests by pro-India and Hindu groups, increasing the risk of communal polarization within Canadian public spaces. These tensions have also contributed to rising anti-immigrant rhetoric and concerns about social cohesion.
At the same time, CSIS continues to criticize alleged Indian foreign interference and intelligence activities targeting Sikh activists in Canada. The report places India alongside countries such as China, Russia, Iran, and Pakistan in discussions on transnational repression. This dual approach reflects Canada’s attempt to balance domestic security concerns with geopolitical sensitivities and diaspora politics.
The absence of any direct reference to the 2023 killing of Hardeep Singh Nijjar is striking, especially given the diplomatic crisis it triggered between Ottawa and New Delhi. Nevertheless, the broader direction of the report validates many of India’s long-standing concerns regarding extremist and criminal networks operating from Canadian territory.
Ultimately, the CSIS Public Report 2025 represents an important transition in Canadian policy thinking. By moving the Khalistan issue from the realm of diplomatic disagreement into the framework of domestic national security, Canada’s intelligence establishment has acknowledged the seriousness of the threat more openly than ever before. The central challenge now lies in whether the Canadian government possesses the political will to consistently act upon its own assessment while balancing civil liberties, diaspora sensitivities, and strategic relations with India.
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