India, Canada begin resetting ties as Modi meets Carney at G7

New Delhi, June 18: On the sidelines of the G7 Summit in Kananaskis, Alberta, Prime Minister Narendra Modi met with his Canadian counterpart, Mark Carney, in a high-profile bilateral that marked the first in-person conversation between the two leaders since Carney took office. The meeting signalled a cautious but a step-forward to repair the diplomatic fall-out that had plagued India-Canada relations in recent years.

“Had an excellent meeting with Prime Minister Mark Carney,” Prime Minister Modi posted on X, “Complimented him and the Canadian Government for successfully hosting the G7 Summit. India and Canada are connected by a strong belief in democracy, freedom and rule of law. PM Carney and I look forward to working closely to add momentum to the India-Canada friendship. Areas like trade, energy, space, clean energy, critical minerals, fertilisers and more offer immense potential in this regard.”

The diplomatic tone was markedly different from the bitter exchanges that characterised relations under the leadership of Carney’s predecessor, Justin Trudeau. Tensions escalated sharply last year when Trudeau publicly alleged Indian involvement in the killing of a Canadian Sikh separatist leader, a charge India flatly rejected as "absurd" and "politically motivated." In the aftermath, both nations expelled senior diplomats and suspended key trade and diplomatic engagements.

The diplomatic standoff led to a significant reduction in high commission staffing, a pause in negotiations on the Early Progress Trade Agreement (EPTA), and a halt in ministerial-level contacts. The once-promising ties, driven by economic complementarities and a 1.6 million-strong Indo-Canadian community, teetered on the brink of long-term estrangement.

However, with Carney’s election and a broader reorientation of Canadian foreign policy, both capitals appear ready to recalibrate. The two leaders agreed to begin this process with the early return of their respective High Commissioners to New Delhi and Ottawa. They also highlighted the need to resume senior ministerial dialogues and working-level engagements across key domains.

In their meeting, Modi and Carney emphasised collaboration in areas such as clean energy, digital technology, artificial intelligence, higher education, and critical minerals. Both sides agreed to work towards resuming EPTA negotiations with the long-term goal of finalizing a Comprehensive Economic Partnership Agreement (CEPA).

Importantly, both leaders reiterated their shared commitment to a free, open, and rules-based Indo-Pacific, an area where geopolitical competition has sharpened in recent years.

The meeting also highlighted the strength of people-to-people ties, which could serve as a potential diplomatic bridge between the countries. With over 230,000 Indian students in Canada and a vibrant Indo-Canadian diaspora, cultural and familial connections remain strong despite political turbulence.

Observers say the meeting is a critical first step, but note that repairing bilateral trust will require sustained political will. "There’s a lot of ground to cover," says a senior Indian retired diplomat. "But there’s also recognition that our ties are too deep and economically significant to be held hostage to political missteps." Both Modi and Carney agreed to remain in close contact and explore a follow-up meeting later this year, possibly on the margins of the UN General Assembly.