Prime Minister Narendra Modi's recent meeting with Canadian Prime Minister Mark Carney on the sidelines of the G7 summit in Kananaskis, Alberta, signals a hopeful turn in India-Canada relations. The discussions, held on June 17, 2025, emphasized the importance of strengthening democracy and humanity through collaborative efforts between the two nations. This meeting, the first between the two leaders since Carney assumed office in April, carries significant weight given the strained relations of the recent past.

Modi expressed his gratitude to Carney for inviting India to the G7 summit, noting that it provided a valuable opportunity to reconnect with the Canadian people after his last visit in 2015. He underscored the importance of the India-Canada relationship, highlighting the investments made by Canadian companies in India and the substantial investments by Indian people in Canada. Modi asserted that both nations, dedicated to democratic values, must work together to fortify democracy and humanity. He expressed confidence that by optimally utilizing their resources, India and Canada could contribute to the welfare of the entire world.

Carney echoed these sentiments, stating that it was a "great honour" to host Modi at the G7 summit. He acknowledged the importance of India's role on the global stage and expressed eagerness to collaborate on issues such as energy security, the future of AI, and the fight against terrorism and transnational repression.

One of the most significant outcomes of the meeting was the agreement to appoint new high commissioners in both countries. This decision aims to restore normal diplomatic services for citizens and businesses, which had been severely impacted by the recent tensions. The Canadian Prime Minister's office released a statement emphasizing that both leaders affirmed the significance of Canada-India relations, built on mutual respect, adherence to legal frameworks, and a commitment to sovereignty and territorial integrity.

The backdrop to this meeting is a period of strained relations, primarily stemming from allegations made by the previous Canadian government regarding the involvement of Indian agents in the assassination of a Sikh separatist leader, Hardeep Singh Nijjar, in 2023. These allegations led to diplomatic expulsions and a freeze in relations. However, with the change in leadership in Canada and the proactive steps taken by both sides, there is now a palpable sense of optimism for a reset.

Several factors point to the potential for a stronger India-Canada relationship. First, there is a growing recognition on both sides that repairing ties is essential. Quiet diplomacy and back-channel conversations have been underway to prepare for re-engagement. Second, the economic complementarities between the two countries offer significant opportunities. Bilateral trade remains robust, with goods trade amounting to $8.6 billion in 2024. Canadian pension funds have invested over $75 billion in India, indicating a strong interest in the Indian market. An Early Progress Trade Agreement (EPTA) could serve as a strategic pathway to deeper trade engagement, unlocking mutual economic opportunities through a phased and pragmatic approach. Finally, with escalating global tensions, particularly involving China and Russia, it makes strategic sense for Canada to deepen ties with India. This emerging alignment provides a foundation for constructive engagement.

Despite the positive momentum, challenges remain. Concerns related to Khalistan-related extremism continue to be a sensitive issue. Managing these security concerns professionally, without allowing them to derail broader ties, will be crucial.

In conclusion, Prime Minister Modi's visit to Canada for the G7 summit and his meeting with Prime Minister Carney represent a critical opportunity to revitalize India-Canada relations. The emphasis on strengthening democracy and humanity, coupled with concrete steps such as the appointment of new high commissioners, signals a commitment to a more prosperous and collaborative future. As both nations navigate their complex history, the world will be watching closely to see if they can forge a stronger partnership for the benefit of their citizens and the global community.