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Canada Designates Khalistani Outfits As Terrorist Entities Amid Improving Ties With India Canada has, for the first time, officially acknowledged the presence of Khalistani extremist groups on its soil. A new 2025 assessment by Canada's Department of Finance identifies Babbar Khalsa International and the International Sikh Youth Federation as terrorist entities receiving funds from Canadian sources. The report reveals extremist networks misuse charities, diaspora donations, crypto, and even criminal activity to sustain operations aimed at creating an independent Khalistan in Punjab. This marks a major validation of India's longstanding concerns about anti-India activities in Canada. The disclosure comes as Prime Minister Mark Carney pledges to mend strained ties with New Delhi after the 2024 Nijjar killing row that triggered one of the worst diplomatic crises between the two nations. Credit : First Post.