At the G7 Summit in Kananaskis, a significant diplomatic breakthrough occurred as Indian Prime Minister Narendra Modi met with Canadian Prime Minister Mark Carney. The meeting, described by officials as "positive" and "constructive," marked an important step toward repairing strained India-Canada relations, which had suffered since the 2023 allegations regarding Indian involvement in the killing of pro-Khalistan separatist Hardeep Singh Nijjar. India had firmly rejected the allegations as “absurd” and “motivated,” but the fallout had led to a freeze in diplomatic engagement and the withdrawal of High Commissioners.

In a joint move to stabilize and rebuild the relationship, both leaders agreed to reinstate High Commissioners to each other’s capitals. This symbolic gesture is seen as the first step in restoring full diplomatic engagement. The leaders also committed to resuming senior-level dialogues in key areas including trade, people-to-people contacts, and connectivity. Notably, the trade negotiations between the two countries, which were previously paused, are now set to resume, with instructions given to respective officials to restart the process soon.

Prime Minister Carney raised key issues during the talks, such as transnational crime, repression, and the importance of a rules-based international order. These topics reflect Canada’s concern over issues of security and sovereignty. Nevertheless, both nations showed a strong willingness to move forward constructively.

The leaders discussed extensive bilateral cooperation opportunities in areas such as clean energy, clean technology, artificial intelligence (AI), digital infrastructure, food security, critical minerals, and supply chain resilience. These sectors were identified as holding immense mutual benefit and potential for deeper collaboration. Prime Minister Modi emphasized that India and Canada share fundamental values such as democracy, freedom, and the rule of law, which provide a strong foundation for strengthening ties.

In his public statement, Modi praised Canada’s successful hosting of the G7 Summit and expressed optimism about enhancing India-Canada cooperation in trade, energy, space, fertilisers, and clean technologies. Carney, in turn, acknowledged India’s growing importance on the global stage and its consistent participation in G7 since 2019. He emphasized India’s leadership role in areas like energy security, AI development, and the fight against terrorism and transnational repression.

India's Foreign Secretary Vikram Misri later confirmed that the leaders had a very positive discussion and outlined calibrated steps to bring stability to the bilateral relationship. He reiterated that diplomatic actions would follow, starting with the return of High Commissioners and leading to high-level dialogue on trade and strategic matters.

The Canadian Prime Minister’s Office also issued a statement reaffirming the importance of India-Canada ties based on mutual respect, democracy, and sovereignty. It highlighted the shared economic interests, strong cultural and historical connections between their peoples, and the commitment to enhancing collaboration in the Indo-Pacific region.

This meeting was Modi’s first visit to Canada in ten years and signaled a thaw in diplomatic relations following last year’s tension. With both nations committing to future engagement and cooperation across a wide range of sectors, the meeting laid a solid foundation for rebuilding trust and forging stronger bilateral ties.