There is a growing dichotomy in the way the world sees India after ten years of rapid political, economic and social change. On the one hand, there is the India of increasing political stability and potential for economic growth which is quickly integrating into the global economy; on the other, a nuclear-armed India with genuine security concerns in South Asia, yet having the potential to bring about greater peace and security in the region. Although Indo-Canadian economic relations have strengthened in recent times, Canada is currently running the risk of shaping its policy around the first India at the expense of the second. It would be in Canada's interest to develop a more coherent, and consistent, policy toward India, which would better reflect the country's complex political and economic developments. Failure to do so might adversely affect the relations between the two countries at an important period in India's transformation.