At the G7 Summit in Alberta, Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney agreed to restart trade negotiations and enhance bilateral relations. After years of diplomatic strain, the two nations decided to re-establish full diplomatic presence by designating new high commissioners in each other’s capitals. This marks a significant step towards normalising bilateral relations after a period of diplomatic chill.
According to a statement from Canadian PM’s Office, the leaders agreed to resume regular services for citizens and businesses in both countries. The two sides discussed avenues for deepening cooperation in technology, higher education, digital transition, clean energy, AI, food security, and critical minerals. Both leaders emphasized on shared democratic values and a forward-looking partnership. They reiterated support for a free and open Indo-pacific and acknowledged the progress made at G7 on global issues including climate action and sustainable growth.
Relations between Canada and India have been strained for many years. India has been unhappy with Canada overlooking anti-India activities by Sikh separatists from its soil. The relations came under severe strain when former Canadian PM Justin Trudeau accused Indian agents of involvement in the killing of a Khalistani separatist. India rejected the allegations as politically motivated. Bilateral ties froze, high commissioners were recalled, trade talks were paused and visa services were suspended briefly.
The renewed diplomatic effort signals a pragmatic shift towards engagement. Without revisiting past tensions publicly, both sides are focusing on shared interests and cooperation, signalling a willingness to move forward through institutional dialogue rather than public confrontation. The two countries agreed to strengthen defence industry collaboration, initiate dialogues on cyber and maritime security, and set up a real-time information exchange mechanism to combat terrorism and cross-border crimes.
Will the recent meeting between the PMs of Canada and India lead to significant improvement in bilateral relations? Expert views would be welcome.