Prime Minister Narendra Modi's recent visit to Canada for the G7 Summit marks a significant moment in the evolving relationship between India and Canada, signaling a potential reboot after a period of strained ties. This is Modi's first visit to Canada in a decade, and it comes at the invitation of Canada's new Prime Minister, Mark Carney.
The G7 Summit, held in Kananaskis, Alberta, from June 16-17, 2025, provided a crucial platform for discussions on pressing global issues. These included energy security, technology and innovation, with a particular focus on the AI-energy nexus and quantum-related issues. Modi's participation in the Outreach session allowed him to share his views with leaders from G7 countries, invited outreach nations, and heads of international organizations.
Beyond the broader summit agenda, a key focus of Modi's visit was the potential to reset India-Canada relations. Ties between the two countries had deteriorated following allegations made by the previous Canadian government regarding the killing of Hardeep Singh Nijjar in 2023. India has consistently rejected these allegations as absurd and motivated, and the change in Canadian leadership has opened a window for renewed engagement.
Several factors point towards a desire from both sides to mend fences. Following Trudeau's exit, New Delhi expressed its hope to rebuild ties based on "mutual trust and sensitivity". Security officials from both countries have resumed contact in recent months, and discussions are underway regarding the appointment of new high commissioners. The External Affairs Ministry has described the meeting between Modi and Carney as an opportunity to exchange views and explore pathways to reset bilateral ties.
The economic dimension of the India-Canada relationship remains important. In 2024, bilateral trade in goods stood at $8.6 billion, with India exporting $4.2 billion and importing $4.4 billion. Trade in services reached $14.3 billion, with India exporting $2.5 billion and importing $11.8 billion. While these figures demonstrate a continued economic exchange, there is potential for significant growth, especially considering that Canadian pension funds have already invested over $75 billion in India. Both nations are actively seeking to diversify their trade partners, and a strengthened India-Canada relationship could unlock new growth opportunities across various sectors, including pharmaceuticals, chemicals, energy, and technology.
Discussions are underway to create a joint working group to deal with transnational crimes, and to "ring-fence" bilateral ties from the ongoing judicial process regarding Nijjar's killing. While Canada will have a mechanism to discuss issues related to the judicial process, India can raise concerns about Khalistan separatism and extremism.
Modi's visit and the G7 Summit provide an opportunity to address these issues and chart a course for a more stable and productive relationship between India and Canada.
