India and Canada have agreed to reinstate their respective High Commissioners, signaling a potential thaw in relations that have been strained since 2023. The agreement was reached during a meeting between Prime Minister Narendra Modi and his Canadian counterpart, Mark Carney, on the sidelines of the G7 Summit in Alberta, Canada. This marks the first high-level meeting between the two countries since relations soured following allegations of Indian involvement in the assassination of Hardeep Singh Nijjar, a Canadian Sikh separatist leader.

The decision to return ambassadors, known as High Commissioners between Commonwealth nations, demonstrates a mutual desire to move past the recent diplomatic tensions and restore regular services for citizens and businesses in both countries. The Canadian Prime Minister's office conveyed that the leaders made this decision "with a view to returning to regular services to citizens and businesses in both countries".

PM Modi, attending the G7 summit at the invitation of PM Carney, emphasized the importance of the India-Canada relationship. "The relationship between India and Canada is very important in many ways," Modi stated, adding that both nations are "dedicated to democratic values." He expressed confidence that under Carney's leadership, the two countries could work together constructively across various areas.

Carney, who assumed office in March, welcomed Modi to the G7 summit, acknowledging India's significance on the global stage. While alluding to the sensitive issues that have strained relations, Carney highlighted the importance of addressing "transnational repression" and terrorism, alongside other shared priorities like energy security and the future of artificial intelligence.

The decision to re-establish diplomatic representation at the highest level follows a period of significant tension. In 2023, then-Canadian Prime Minister Justin Trudeau publicly accused the Indian government of involvement in Nijjar's assassination, leading to the expulsion of diplomats from both countries. India has vehemently denied these allegations and has, in turn, accused Canada of harboring and enabling anti-India activities on its soil by pro-Khalistan groups.

Despite the lingering disagreements, both leaders seem keen to steer the relationship towards a more constructive path. The meeting in Alberta provided an opportunity to address concerns and explore avenues for cooperation. According to reports, both sides are expected to sign an intelligence-sharing agreement, a move that could foster greater trust and collaboration in addressing security concerns.

PM Modi underscored that "India-Canada relations are extremely important" and that both countries should strive for "win-win cooperation in several areas." He also noted the significant investments made by Canadian companies in India and vice versa, highlighting the economic ties that bind the two nations. Areas like trade, energy, space, clean energy, critical minerals, and fertilizers offer immense potential for future collaboration.

While the restoration of High Commissioners is a positive step, challenges remain. India has long sought stronger action from Canada against separatist elements operating within its borders. Meanwhile, concerns persist in Canada regarding transnational repression and the safety of its citizens. Navigating these complex issues will require sustained dialogue and concrete actions from both sides.

The G7 summit provided a platform for PM Modi and PM Carney to begin this process, signaling a willingness to reset a relationship that both countries recognize as strategically important.