We study the coinduction functor on the category of FI-modules and its variants. Using the coinduction functor, we give new and simpler proofs of (generalizations of) various results on homological properties of FI-modules. We also prove that any finitely generated projective VI-module over a field of characteristic 0 is injective.

We show that Hecke algebra of type B and a coideal subalgebra of the type A quantum group satisfy a double centralizer property, generalizing the Schur-Jimbo duality in type A. The quantum group of type A and its coideal subalgebra form a quantum symmetric pair. A new theory of canonical bases arising from quantum symmetric pairs is initiated. It is then applied to formulate and establish for the first time a Kazhdan-Lusztig theory for the BGG category O of the ortho-symplectic Lie superalgebras $\mathfrak{osp}(2m+1|2n)$. In particular, our approach provides a new formulation of the Kazhdan-Lusztig theory for Lie algebras of type B/C.

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