Modi, Carney Meeting On G7 Sidelines Ends Diplomatic Impasse: India, Canada To Reinstate Envoys, Resume Trade Talks

India and Canada have agreed to reinstate their High Commissioners after months of strained ties, marking a breakthrough following a meeting between Prime Minister Narendra Modi and Canada's newly elected PM Mark Carney at the G7 Summit in Kananaskis, India Today reported.

Briefing the media on the meeting, Foreign Secretary Vikram Misri stated that both leaders agreed to “take calibrated steps” to stabilise relations, starting with reinstating High Commissioners.

"Other diplomatic steps will follow in due course," he added.

Modi and Carney also agreed to revive stalled trade negotiations, and decided to direct their officials to resume talks soon.

Misri emphasised that both sides remain eager to maintain open dialogue.

The aim of the Modi-Carney dialogue was also to restore normal consular and business services between the two nations.

The leaders acknowledged long-standing strong people-to-people links and discussed expanding trade, Indo-Pacific collaboration, supply chain resilience, and clean energy partnerships.

A statement from the Canadian Prime Minister’s Office said Mark Carney and Prime Minister Modi reaffirmed the significance of Canada-India relations, anchored in mutual respect, adherence to the rule of law, and a shared commitment to sovereignty and territorial integrity.

"The leaders agreed to designate new high commissioners, with a view to returning to regular services to citizens and businesses in both countries," the statement said.

"They discussed strong and historic ties between our peoples, partnerships in the Indo-Pacific, and significant commercial links between Canada and India – including partnerships in economic growth, supply chains, and the energy transformation," the statement added.

The leaders also discussed opportunities to deepen engagement in areas such as technology, the digital transition, food security, and critical minerals, it added.

Relations soured sharply last year after then Canadian PM Trudeau alleged Indian involvement in the killing of Khalistani terrorist Hardeep Singh Nijjar in Canada.

India rejected Trudeau’s claims as “absurd and motivated,” prompting a diplomatic standoff, expulsion of diplomats, and suspension of trade dialogue.

In October 2024, India expelled six Canadian diplomats and recalled High Commissioner Sanjay Verma amid escalating tensions over Ottawa’s allegations in the Nijjar case.

Verma had been named a “person of interest” in Canada's Nijjar probe.

India acted swiftly, recalling him and five flagged diplomats before further Canadian action.

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