Thaw in India-Canada Ties After Period of Diplomatic Strain

Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney met on Monday on the sidelines of the G7 Summit in Alberta. This marked their first face-to-face interaction since Carney’s election earlier this year. 

The meeting comes after a prolonged phase of diplomatic tensions between the two countries over the issue of pro-Khalistani separatist activities operating from Canadian soil.

Image Source: PMO India on X

Bilateral ties between India and Canada had significantly deteriorated in recent years. The tensions reached its crescendo especially following the 2023 killing of Khalistani separatist Hardeep Singh Nijjar in British Columbia. 

Canada’s previous administration under Justin Trudeau had accused Indian officials of involvement, which triggered a diplomatic standoff. In response, India recalled several of its diplomats and accused Ottawa of allowing anti-India elements to operate with impunity.

The Modi-Carney meeting, described as “frank and forward-looking,” appears to signal a mutual intent to rebuild trust and stabilize the relationship. Both leaders stated the importance of India-Canada ties grounded in shared democratic values, rule of law, and respect for sovereignty and territorial integrity. 

They acknowledged the need to address each other’s core concerns and sensitivities in order to move towards a balanced partnership.

Sharing my remarks during meeting with PM @MarkJCarney of Canada. https://t.co/rPd42cqsbv

— Narendra Modi (@narendramodi) June 17, 2025

As a first step towards normalization, both sides agreed to expedite the return of their respective High Commissioners to each other’s capitals. 

They also committed to restarting ministerial and working-level dialogues across various sectors to inject momentum into bilateral engagement.

The leaders identified several areas for enhanced cooperation, including clean energy, critical minerals, artificial intelligence, digital transformation, LNG, food security, higher education, mobility, and resilient supply chains. 

Both leaders emphasised their shared interest in promoting a free and open Indo-Pacific and agreed to resume discussions on the stalled Early Progress Trade Agreement (EPTA), potentially paving the way for a broader Comprehensive Economic Partnership Agreement (CEPA).

The meeting also reflected a willingness to work together on global issues discussed at the G7, including climate action, inclusive economic growth, and sustainable development. 

With strong people-to-people ties serving as a foundation, both leaders acknowledged the potential to leverage their vibrant diasporic connections to strengthen long-term cooperation.