Canada and India Chart New Diplomatic Course After Years of Tension

Canada and India Chart New Diplomatic Course After Years of Tension
Jitendra Kumar
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In a development signaling a major diplomatic breakthrough, India and Canada have agreed to reestablish full diplomatic engagement, ending a two-year period of frosty relations. This reset came during a high-level meeting between Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi at the G7 summit in Kananaskis, Canada.

The relationship between the two countries had deteriorated significantly after the 2023 assassination of Hardeep Singh Nijjar, a Canadian Sikh separatist leader, with then-Prime Minister Justin Trudeau publicly implicating Indian agents. The fallout included diplomatic expulsions, the suspension of trade talks, and a sharp downturn in bilateral cooperation.

A New Tone with New Leadership

Prime Minister Mark Carney, having taken office in early 2025, entered the G7 summit with a strong mandate to rebuild Canada’s global relationships. His direct engagement with Modi has already begun to alter the tone of what was once a fractured diplomatic partnership.

Sources familiar with the talks described the meeting as candid but productive, with both leaders focused on moving forward rather than rehashing past grievances. A joint communiqué issued after the talks emphasized “renewed commitment to dialogue, shared democratic values, and cooperation in trade, education, and security.”

Reinstating Diplomatic Channels

One of the first steps taken was a mutual agreement to reappoint high commissioners to New Delhi and Ottawa, a symbolic and practical move to restore normal diplomatic function. Visa processing operations—which had been delayed or suspended—will now resume full capacity, with additional staff being deployed at consulates to address the backlog.

This change is likely to benefit thousands of Indian students and immigrants seeking entry to Canada, as well as Canadian businesses hoping to expand into India’s rapidly growing markets.

Trade and Economic Engagement Regain Momentum

Prior to the diplomatic rupture, Canada and India had been negotiating the Comprehensive Economic Partnership Agreement (CEPA). Talks were halted in 2023 amid political tensions. However, Prime Minister Carney expressed optimism about restarting the process, noting that “a resilient, forward-facing trade relationship with India is essential for Canadian economic diversification.”

India, for its part, is open to foreign investment and keen to secure reliable supplies of critical minerals and agri-tech solutions—areas where Canada has competitive advantages.

Joint working groups are expected to reconvene in coming months to assess timelines and sectoral priorities for CEPA negotiations. Analysts suggest a mini-deal focused on technology and clean energy could be reached within a year.

The Security Dimension: Balancing Freedoms and Accountability

Security was a central point of discussion, particularly in light of India’s long-standing concerns about pro-Khalistan extremist elements operating in Canada. Prime Minister Modi reportedly emphasized that India’s sovereignty could not be undermined by foreign-hosted militant movements.

Carney acknowledged these concerns and proposed enhanced intelligence-sharing mechanisms between Canadian and Indian security agencies. Canada will also introduce stricter oversight on foreign funding of extremist groups while reaffirming its commitment to protect peaceful political expression.

Experts say this approach represents a middle path—respecting Canada’s free speech framework while addressing India’s calls for greater accountability.

People-to-People Ties: A Shared Cultural Bridge

Indian Canadians form one of the largest and most influential diaspora communities in the country. This cultural bridge has long been a strength of the bilateral relationship, even during official diplomatic lows.

Carney and Modi emphasized the need to “depoliticize diaspora issues” and celebrate cultural ties instead of allowing them to fuel division. Initiatives under discussion include youth exchange programs, academic partnerships, and the establishment of a joint cultural commission.

There’s also growing support for creating a Canada-India Innovation Fund, aimed at supporting startups from both countries in fields like artificial intelligence, green tech, and pharmaceuticals.

The Global Context

The timing of the diplomatic reset is notable. With geopolitical uncertainty on the rise—especially in the Indo-Pacific, Eastern Europe, and the Middle East—Canada and India share increasing interest in strengthening multilateral cooperation.

At the G7 summit, both leaders participated in discussions on supply chain resilience, climate change, and democratic governance. Canada also supported India’s call for reforming global institutions such as the United Nations and the World Trade Organization to better reflect contemporary realities.

By rebuilding their bilateral relationship, both countries are positioning themselves more effectively on the global stage.

Next Steps

Following the summit, a series of follow-up visits are being planned, including a ministerial-level economic dialogue in Toronto later this summer, and a cultural summit in New Delhi by the end of the year.

While this diplomatic reset does not mean all underlying tensions have disappeared, it is an important signal that both sides are prepared to deal with their differences through dialogue and mutual respect.

“Every relationship faces periods of strain,” Carney said at a press conference after the summit. “But what matters is how we choose to respond. Canada and India are choosing dialogue, partnership, and progress.”

In India, media coverage of the summit has been largely positive, with analysts pointing to Modi’s pragmatism in pursuing regional and global alliances ahead of India’s G20 presidency in 2026.

Conclusion

As Canada and India reopen their diplomatic doors, the international community will watch closely to see whether this thaw leads to durable cooperation. What’s clear is that with leadership change and a shared interest in global stability, both countries are now aligned on resetting not just policy—but perception, purpose, and potential.

Journalist Details

Jitendra Kumar
Jitendra Kumar is an Indian journalist and social activist from Hathras in Uttar Pradesh is known as the senior journalist and founder of Xpert Times Network Private Limited.