Diplomacy on track, Canada out of Trudeau's shadows: New Delhi, Ottawa to reinstate high commissioners after PM Modi, Carney meet

Canada seems to be coming out of the shadows of former Prime Minister Justin Trudeau. At least, the recent meeting between Prime Minister Narendra Modi and Canadian PM Mark Carney hints at it. The two leaders met at the sidelines of G7 Summit in Kananaskis and “agreed to take calibrated steps to restore stability to the relationship.” They also decided to restore High Commissioners to each other’s capitals, in a big diplomatic makeover, months after tensions in the relationship.

Modi-Carney meeting and the diplomatic reset of ties

Prime Minister Modi and Canadian PM Carney also agreed to resume senior-level dialogues on trade, people-to-people contact, and connectivity. They also decided that the trade negotiations — that were paused — will be taken up soon. During the bilateral meeting, Carney said it was “a great honour” to host Prime Minister Modi at the G7. “It’s a testament to the importance of your country, to your leadership, and to the importance of the issues that we look to tackle together,” Carney said. Canadian PM also raised the issue of “transnational crime and repression”, security, and the rules-based order, in conversation with the Indian PM.

Foreign Secretary Vikram Misri confirmed that both leaders had a “very positive and constructive” discussion, which highlighted shared democratic values, people-to-people connections, and mutual economic interests. India in its statement after the meeting also specified that both leaders respects the rule of law and are committed to upholding the principles of sovereignty and territorial integrity.

The Canadian Prime Minister’s Office said that both leaders “reaffirmed the importance of Canada-India ties, based upon mutual respect, the rule of law, and a commitment to the principle of sovereignty and territorial integrity,” and that they would “return to regular services to citizens and businesses in both countries.”

Carney’s decision to invite PM Modi to the G7 drew criticism from some Sikh organisations in Canada. However, he clearly stated that India is important to Canada. Earlier, he had also said that he wanted to improve ties with ‘like-minded nations’ like India.

India and Canada are significant trading and investment partners, and both sides have now agreed to reinvigorate economic engagement. The leaders discussed opportunities for future collaboration in areas such as clean energy, digital transformation, artificial intelligence, LNG, food security, critical minerals, higher education, mobility, and supply chain resilience. They reaffirmed their shared interest in promoting a free and open Indo-Pacific. The leaders also discussed the importance of restarting the stalled negotiations on the Early Progress Trade Agreement (EPTA), with a view to paving the way for a Comprehensive Economic Partnership Agreement (CEPA). They agreed to task their respective officials to engage further in this regard.

Diplomatic fallout during Trudeau's tenure

Former PM Justin Trudeau had said that there was evidence linking agents of the Indian government to the murder of Canadian Sikh separatist Hardeep Singh Nijjar in Surrey in June 2023. In October 2024, Canada announced it had expelled six Indian diplomats — including the high commissioner, who refused to waive their diplomatic immunity in order to participate in investigation. New Delhi, in response, expelled the acting Canadian high commissioner and five other Canadian diplomats, and the posts have remained vacant since then.

Though, Carney has not called out the Khalistanis for their anti-India propaganda on Canadian soil, he has also not signalled out India over investigations on Nijjar's killing. When asked about it a few days ago, he had said, “There is a legal process that is literally underway and quite advanced in Canada… It’s never appropriate to make comments with respect to those legal processes."