NEW DELHI / ALBERTA — In a pivotal breakthrough in bilateral diplomacy, India and Canada have agreed to reinstate High Commissioners in each other’s capitals and resume stalled trade negotiations, following a “positive and constructive” meeting between Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G7 Summit in Alberta.
The meeting — the first high-level interaction since diplomatic relations soured in 2023 — marked a turning point in efforts to restore stability and trust between the two democracies.
Top Diplomats to Return, Trade Dialogue to Restart
India’s Foreign Secretary Vikram Misri described the discussions as “forward-looking” and noted that both leaders placed “strong emphasis on democratic values, rule of law, and people-to-people ties.”
“Diplomatic steps will follow in due course,” Misri said, confirming that both countries had agreed to designate new High Commissioners and resume senior-level dialogues on trade, connectivity, and public engagement.
Trade negotiations, previously suspended amid tensions, will now resume at an early date, with both leaders directing their teams to prioritise economic cooperation.
A Decade-Long Wait and a Delicate Reset
This is PM Modi’s first visit to Canada in 10 years, and his first since diplomatic relations nosedived over the 2023 killing of Khalistani separatist Hardeep Singh Nijjar. Canada had accused Indian agents of involvement, a claim New Delhi rejected as “absurd” and “politically motivated.” The fallout led to mutual expulsion of diplomats, suspended trade talks, and worsening people-to-people links.
But PM Carney, who succeeded Justin Trudeau earlier this year, struck a conciliatory tone, opening the door to dialogue and reset.
“India has been coming to the G7 since 2019. From energy security to the fight against transnational repression and terrorism, it’s my great honour to have you here,” Carney told Modi during the bilateral.
Clean Energy, AI, Critical Minerals on Agenda
The leaders also pledged to expand collaboration on clean energy, digital infrastructure, AI, food security, and critical minerals — areas with vast potential for India-Canada cooperation.
“Had an excellent meeting with Prime Minister Mark Carney,” PM Modi said after the talks. “India and Canada are connected by a strong belief in democracy, freedom and the rule of law… Areas like trade, energy, space, clean energy, critical minerals, fertilizer’s and more offer immense potential.”
Canada Acknowledges India’s Global Role
A statement from the Canadian Prime Minister’s Office reaffirmed the importance of India-Canada ties being “based on mutual respect, the rule of law, and a commitment to sovereignty and territorial integrity.” It also confirmed the mutual decision to return to “regular services to citizens and businesses” through reinstated diplomatic channels.
Carney also raised concerns over “transnational crime and repression”, underscoring Canada’s desire to maintain a rules-based international order while cooperating with India on security matters.
Looking Ahead: A Cautious but Promising Reset
Though challenges remain, the re-engagement between India and Canada signals a willingness to move past a fraught chapter. With trade talks, high-level exchanges, and diplomatic relations back on track, both nations are looking to rebuild trust while tapping into shared economic and strategic interests.
