Modi–Carney G7 Meeting Signals Major India–Canada Diplomatic Reset
After months of tensions, both nations agree to restore high commissioners and resume trade and tech talks during a pivotal G7 Summit meeting

Kananaskis, June 17: The optics were calm, the setting almost idyllic — but the stakes behind closed doors were anything but. When Prime Minister Narendra Modi and Canada’s newly minted leader Mark Carney met on the sidelines of the G7 Summit in Alberta’s mountain-ringed Kananaskis, they weren’t just exchanging pleasantries. They were quietly trying to rebuild a relationship that, until recently, was sliding toward freefall.
For the first time since diplomatic relations nosedived over the killing of Sikh separatist Hardeep Singh Nijjar in British Columbia — and the extraordinary public allegation from Canada that Indian agents may have been involved — both countries appear to be walking back from the edge. Deliberately, and it seems, pragmatically.
Diplomatic Reboot: Not Quite a Rapprochement, But Close
The headline is easy: India and Canada will restore their high commissioners in Ottawa and New Delhi. But the subtext carries more weight. The absence of ambassadors wasn’t just symbolic — it crippled diplomatic machinery at every level. Their reinstatement suggests not just a thaw, but a mutual admission: isolation served neither side.
According to an official readout from Carney’s office, both leaders “reaffirmed the importance” of ties built on sovereignty, mutual respect, and — pointedly — the rule of law. That phrasing isn’t accidental. For Carney, a former central banker known for his policy precision, it’s a way of signalling that while Ottawa may be reopening channels, it hasn’t forgotten the context that shut them down.
Modi, for his part, offered no public comment. But insiders in South Block say the return of high commissioners is a line India was unwilling to cross until Ottawa dialled down its rhetoric. That this has now happened suggests some hard bargaining took place behind closed doors.
Trade Talks Resume — But Trust Has a Long Road
At the economic level, the reset was more overt. Senior-level dialogues on trade, mobility, and people-to-people ties — all frozen since 2023 — are now back on the table. Officials have been instructed to re-engage stalled negotiations with a “clear pathway forward,” according to New Delhi’s diplomatic corps.
But seasoned observers of India–Canada trade know this terrain is more marshland than motorway. Negotiations under the Comprehensive Economic Partnership Agreement (CEPA) have dragged on for over a decade. Tariff disputes, agricultural sensitivities, and regulatory gaps continue to snarl progress. Add mistrust to that cocktail, and the promise of quick wins feels optimistic.
That said, the political will seems stronger than before. Canada, under Carney, has realigned its economic gaze toward the Indo-Pacific, and India — eager to secure partners in minerals, tech, and renewables — is willing to play ball. The challenge now is stitching together substance from this symbolic handshake.
Strategic Realignment: A Quiet Convergence of Interests
Perhaps the most interesting — and least publicised — aspect of the meeting was the emerging strategic logic beneath the reconciliation. As per the Canadian readout, the leaders explored cooperation on critical minerals, clean energy, AI, and the digital transition — themes that go beyond traditional diplomacy and into the architecture of future economies.
For Canada, India represents not just a rising economic partner, but a bulwark against global authoritarian drift. It’s no coincidence that the statement referenced the rules-based order and transnational repression — terms with obvious resonance, given the Nijjar case, but which also nod to broader geopolitical anxiety.
For India, Canada’s mineral wealth and advanced technology ecosystem offer value that transcends bilateral politics. As one senior official in MEA put it privately, “we don’t need perfect alignment — we need reliable access.”
Domestic Optics: A Tightrope Walk for Both Leaders
Still, the politics at home remain fraught. In Canada, Sikh civil society groups — particularly in British Columbia and Ontario — have voiced strong opposition to what they see as a premature normalization. Protests were reportedly visible near the G7 venue, and Carney’s government will have to navigate accusations of retreating from its own principles.
In India, the Nijjar allegation is viewed with deep scepticism, if not outright derision. Officials maintain Canada has yet to present evidence that meets legal thresholds, and insist the diplomatic overreaction was driven more by domestic politicking than hard intelligence. That narrative plays well with Modi’s base, which prizes sovereignty and strategic assertiveness.
So this reconciliation, if it can be called that, will require careful choreography. Both governments are talking again — but both are also watching their own constituencies for backlash.
Why This Reset Matters — And Why It’s Fragile
Strategically, the India–Canada relationship has long been underleveraged. Despite shared democratic values, a vast Indian diaspora in Canada, and complementary economic interests, the partnership has often felt like two ships passing in the fog — vaguely aligned but never quite on course.
This week’s meeting may not mark a dramatic realignment. But it does suggest that both leaders see more risk in silence than in engagement. The return of high commissioners, the resumption of trade talks, and the push into new sectors like AI and clean energy are more than diplomatic wallpaper. They’re tactical recalibrations in a shifting global context.
But let’s be clear: the fundamentals haven’t changed. Trust remains thin. Civil society tensions are unresolved. And should another diplomatic flare-up occur, the machinery being rebuilt now could be dismantled just as quickly.
Still, for two governments with more in common than recent headlines suggest, this was a necessary — if cautious — step toward turning a page.
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Raj Chaubey is a Reporting Fellow at Hindustan Herald, specializing in political and geopolitical news. As a student at Delhi University, Raj combines academic rigor with a commitment to investigative journalism, aiming to uncover the broader implications of current events. His daily articles strive to offer our audience a deeper understanding of complex political landscapes and their global connections.