This marks an escalation in the crisis that erupted after Canada's Prime Minister Justin Trudeau said India has hands in the murder of Hardeep Singh Nijjar, who was a designated terrorist in India and Khalistani activist. This was followed by both countries expelling a senior diplomat in a tit-for-tat move.
New Delhi has told Ottawa that it must repatriate roughly 40 diplomats by October 10, FT reported citing people familiar with the demand.
India has warned of potentially withdrawing diplomatic immunity from diplomats who stay beyond that specified date, one person said.
The Canadian foreign ministry and the Indian government declined to comment, FT said. New Delhi had earlier called for 'parity' in terms of the number and rank of diplomats that each country deploys to the other.
Canada has a lot more diplomatic presence at its high commission in New Delhi compared with India's presence in Ottawa, primarily due to the extensive consular section required for the families of the approximately 1.3 million Canadians with Indian heritage.
According to one source, Canada currently has 62 diplomats stationed in India, and New Delhi has reportedly requested a reduction of 41 diplomats from the Canadian mission, FT reported.
India had suspended visa services in Canada until further notice with effect from September 21.