G-7 Diplomatic Reset: India and Canada Agree to Restore Full Ties After Months-Long Rift

PM Modi and Canadian PM Mark Carney Meet at G7 Summit; High Commissioners to Be Reinstated to Restore Services for Citizens and Businesses

Ottawa, June 18, 2025 — In a major breakthrough, India and Canada have agreed to restore diplomatic relations by reinstating ambassadors to each other’s capitals, marking a crucial step forward after months of political chill. The announcement came following a bilateral meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G7 Summit in Kananaskis, Canada.

This development comes after ties between the two nations reached a historic low last year, when former Canadian PM Justin Trudeau accused India of involvement in the killing of Sikh separatist Hardeep Singh Nijjar in British Columbia—a claim India vehemently denied. The fallout led to the expulsion of top diplomats and a significant freezing of diplomatic channels.

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Carney, who assumed office in March, extended an invitation to PM Modi for the G7 Summit and hosted him in the Canadian Rockies. During their meeting, the two leaders agreed to appoint new high commissioners—officials designated as ambassadors between Commonwealth nations—in an effort to normalize diplomatic functions.

The Canadian PM’s office confirmed the development in a statement, saying the decision was made “with a view to returning to regular services to citizens and businesses in both countries.”

Mark Carney described Modi’s presence at the summit as a “great honour,” expressing optimism about future collaboration on global challenges including energy security, artificial intelligence, and the fight against transnational repression and terrorism.

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PM Modi echoed these sentiments, reaffirming the shared democratic values between India and Canada. “The relationship between India and Canada is very important in many ways,” he said, congratulating Carney on his election victory. “I am confident that together…India and Canada will work together to make progress in many areas.”

The diplomatic rift had severely impacted bilateral engagements and services. In 2023, India and Canada conducted $9 billion in trade, and Canada remains home to the largest Sikh diaspora outside India. Hardeep Singh Nijjar, a Canadian citizen and vocal proponent of the Khalistan movement, was fatally shot outside a Sikh temple in Surrey, BC—an incident that ignited one of the most serious diplomatic disputes between the two countries in recent history.

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India had rejected allegations of state involvement and urged Canada to take firmer action against extremist elements promoting secessionist agendas on its soil.

With the appointment of new high commissioners on the horizon, both nations appear poised to move beyond the diplomatic deadlock and rebuild ties on a foundation of mutual respect and shared democratic commitments.

Tags: India-Canada ties, Modi-Carney meeting, G7 Summit 2025, diplomatic relations, Nijjar killing fallout, Hardeep Singh Nijjar, Khalistan row, Indian diaspora, Canada-India trade, bilateral diplomacy

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