Prime Minister Narendra Modi is set to arrive in Canada today, June 16, 2025, to attend the G7 Summit, hosted in Alberta. This visit marks a significant moment as it is his first to Canada since relations between the two nations became strained following allegations surrounding the killing of Khalistani separatist Hardeep Singh Nijjar in 2023. The Indian community in Canada has expressed optimism that this visit will pave the way for improved bilateral relations.
The G7 Summit, an informal gathering of the world's leading industrialized economies—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States—along with representatives from the European Union, the IMF, the World Bank, and the United Nations, provides a crucial platform for discussions on pressing global issues. This year's agenda includes deliberations on artificial intelligence growth, critical minerals, and infrastructure development amidst ongoing global conflicts.
Ties between India and Canada experienced a downturn after former Canadian Prime Minister Justin Trudeau alleged the involvement of Indian agents in the killing of Hardeep Singh Nijjar, an accusation that New Delhi has vehemently denied, dismissing it as "baseless". This led to a series of diplomatic actions, including the expulsion of diplomats from both countries and a pause in trade negotiations.
Despite the recent tensions, there have been signs of a potential thaw in relations. Canada's new Prime Minister, Mark Carney, has expressed interest in rebuilding ties with India, reflecting Ottawa's broader strategy to diversify its trade relationships with "like-minded countries." The Indian Ministry of External Affairs has reciprocated this sentiment, emphasizing the importance of "mutual trust and sensitivity" in rebuilding the relationship.
Ahead of PM Modi's arrival, visible enthusiasm has been reported among the Indian community in Calgary. Community members have voiced their hopes that the visit will lead to improved relations between the two countries, emphasizing India's innovation and its potential to support Canada's development. Some have also highlighted India's growing global influence, asserting that the G7 is incomplete without India's participation.
The meeting between PM Modi and PM Carney on the sidelines of the G7 Summit is viewed as an opportunity to reset India-Canada relations, grounding them on "mutual respect, shared interests, and sensitivity to each other's concerns". Both sides are reportedly close to appointing new envoys to each other's capitals, signaling a move towards restoring full diplomatic presence.
Efforts to stabilize and strengthen the relationship are underway, with the aim of fostering a more durable and forward-looking partnership. This includes the potential reopening of trade talks, particularly the India-Canada Early Progress Trade Agreement (EPTA), which were paused in 2023. Resuming these negotiations is seen as a strategic imperative, especially as Canada seeks to diversify its economic partnerships.
Despite the diplomatic tensions, trade between Canada and India has remained relatively steady, even showing modest growth. In 2024, annual goods trade rose to C$13.3 billion, up from C$12.6 billion in 2023. Furthermore, Canadian Pension Funds have invested approximately US$55 billion in India, indicating continued confidence in the Indian market.
Looking ahead, there is a strategic alignment between Canada and India, particularly in the Indo-Pacific region. Canada's Indo-Pacific strategy identifies India as a critical partner, recognizing its role in maintaining peace and security. Collaboration in areas such as artificial intelligence and emerging technologies could also position both countries as global leaders.
