Canada and India Begin Reset of Strained Relations as Leaders Meet at G7

 India, June 18, 2025 – In a significant step towards mending their recently fractured relationship, Indian Prime Minister Narendra Modi and his Canadian counterpart Mark Carney held a crucial bilateral meeting on Tuesday, June 17th, on the sidelines of the G7 Summit in Kananaskis, Alberta. The leaders agreed to take "calibrated and constructive steps" to restore stability, with the immediate priority being the early return of High Commissioners to each other's capitals.

This marked the first in-person interaction between the two leaders since Mark Carney assumed office as Canadian Prime Minister in March 2025, following the departure of Justin Trudeau. Relations between the two Commonwealth nations plummeted in 2023 after Trudeau publicly alleged Indian government involvement in the killing of Khalistani separatist Hardeep Singh Nijjar on Canadian soil – an accusation India vehemently denied as "absurd" and "motivated." The diplomatic fallout led to reciprocal expulsions of diplomats, a freeze in trade talks, and a significant chilling effect on people-to-people ties, including student visas.

Foreign Secretary Vikram Misri, briefing the media today, described the Modi-Carney meeting as "very positive and constructive." He confirmed that both leaders reaffirmed the importance of India-Canada ties, emphasizing shared democratic values, respect for the rule of law, and commitment to upholding sovereignty and territorial integrity.

A key outcome of the discussion was the agreement to reinstate High Commissioners, a diplomatic step seen as foundational to rebuilding trust. Misri noted that "other diplomatic steps will follow in due course."

Beyond the immediate diplomatic repairs, the leaders also discussed resuming senior and working-level engagements across various domains. These include:

• Trade and Investment: With trade negotiations (Early Progress Trade Agreement - EPTA) having been paused, both leaders agreed to instruct their officials to restart these talks soon, aiming to pave the way for a Comprehensive Economic Partnership Agreement (CEPA).
• Clean Energy and Technology: Exploring collaboration in areas such as clean energy, digital transformation, artificial intelligence, and clean technology.
• Critical Minerals and Supply Chains: Discussions covered food security, critical minerals, and strengthening supply chain resilience.
• People-to-People Contact: Leveraging the strong diaspora ties to benefit both countries, including higher education and mobility.

Canadian Prime Minister Mark Carney, in his own remarks, acknowledged the "frank, open exchange of views around law enforcement and transnational repression," signaling that the sensitive issue of the Nijjar case was indeed discussed. He emphasized the need for a relationship based on "mutual respect, sovereignty, [and] trust" to realize the full potential of the bilateral ties.

Experts view this meeting as a crucial turning point, signaling a pragmatic shift under Carney's leadership to mend a relationship that is vital for economic interests and geopolitical stability, particularly in the Indo-Pacific region. While challenges remain, the agreement to restore diplomatic representation and resume key dialogues offers a clear path forward for Canada and India to begin rebuilding their strategic partnership.