Canada's deepening dispute with India over its alleged campaign of violence against Sikhs in Canada could intensify Indian-based cyber espionage and hold back immigration, but analysts and experts see no immediate impact on trade.

Concern about a widening rift between the two countries comes after a senior Canadian official told a parliamentary national security committee on Tuesday that Indian Minister of Home Affairs Amit Shah, a close ally of Indian Prime Minister Narendra Modi, was the mastermind behind the alleged plots.

While Indian officials dismissed the official's statement, the disclosure might worsen a dispute that started a year ago when Canadian Prime Minister Justin Trudeau cited credible evidence linking Indian agents to the June 2023 shooting of Sikh leader Hardeep Singh Nijjar in British Columbia.