In a significant development signaling a potential thaw in strained relations, Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney met on the sidelines of the G7 Summit in Kananaskis, Canada, where India was a special invitee. The two leaders agreed to reinstate High Commissioners to their respective capitals, marking the first formal step towards mending ties that had been fractured for nearly two years.
The decision to restore diplomatic representation at the highest level comes after a period of considerable tension, triggered by allegations made by Carney's predecessor, Justin Trudeau, regarding the Indian government's involvement in the assassination of Sikh separatist leader Hardeep Singh Nijjar in British Columbia in 2023. These allegations, which India has vehemently denied, led to a diplomatic fallout, including the expulsion of diplomats and a suspension of visa services, impacting the strong cultural and economic ties between the two nations.
According to a statement from the Canadian Prime Minister's Office, the decision to reinstate High Commissioners was made "with a view to returning to regular services to citizens and businesses in both countries." This suggests a desire to de-escalate tensions and resume normal diplomatic functions, which had been severely disrupted. New Delhi has already nominated Dinesh Patnaik, India's Ambassador to Spain, as its envoy to Ottawa.
Beyond the reinstatement of High Commissioners, the meeting between Modi and Carney also focused on resuming stalled trade negotiations and enhancing cooperation in various sectors. The two leaders instructed their officials to restart trade talks "at an early date," signaling a commitment to strengthening the economic partnership between India and Canada. In 2023, bilateral trade between the two countries was valued at $9 billion, highlighting the significant economic potential of this relationship. Discussions also covered collaboration in areas such as clean energy, digital transformation, artificial intelligence, LNG, food security, critical minerals, higher education, mobility, and supply chain resilience.
While the agreement to reinstate High Commissioners and resume trade talks represents a positive step forward, challenges remain. Canada, at the G7, raised the issue of "transnational repression," alluding to concerns about the safety and security of diaspora communities. Carney emphasized the importance of addressing transnational repression and ensuring law enforcement cooperation. Modi, on the other hand, conveyed that both countries were dedicated to democratic values.
Analysts suggest that the change in leadership in Canada, with Mark Carney assuming office in May 2025, has created a window of opportunity for resetting the relationship. Carney's emphasis on economic pragmatism and his invitation to Modi to attend the G7 summit as a guest indicate a willingness to engage with India constructively.
The road ahead may not be without its bumps, particularly given the lingering concerns around the Khalistan movement and its impact on Canadian politics. However, the agreement to reinstate High Commissioners and the commitment to resume trade talks offer a glimmer of hope for a more stable and productive relationship between India and Canada. As Foreign Secretary Vikram Misri noted, the two Prime Ministers have agreed to take calibrated steps to restore stability to this very important relationship.
