Prime Minister Narendra Modi met Canadian Prime Minister Mark Carney for their first official discussion since 2023. Their meeting happened during the G7 Summit in Kananaskis, Alberta. It also marked Modi’s first visit to Canada in ten years.

This meeting broke a long silence between the two countries. Ties had collapsed after former Canadian PM Justin Trudeau accused Indian agents of killing Sikh separatist Hardeep Singh Nijjar in British Columbia.

India strongly denied the charge. The fallout included tit-for-tat expulsions of diplomats, cancelled trade talks, and frozen high-level exchanges.

However, this time, Carney greeted Modi warmly. He said, “It’s my great honour to have you here.” Both leaders later called their meeting “excellent” and “positive.”

Leaders Plan Step-by-Step Rebuilding of Ties

Modi and Carney discussed how to repair relations in a planned and careful way. One of the first decisions was to send new High Commissioners to each other’s capitals. Both countries had pulled their top envoys during the worst part of the dispute.

Foreign Secretary Vikram Misri called the meeting “very positive and constructive.” He said both leaders focused on shared democratic values, strong community ties, and growing economic interests.

Misri added, “The Prime Ministers agreed to take calibrated steps to restore stability to this very important relationship.”

The two leaders also agreed to restart top-level talks in areas like trade, education, mobility, and infrastructure. They asked officials to resume trade negotiations that had stopped during the diplomatic standoff.

Carney’s office said both sides “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.” They also agreed to bring back regular services for citizens and businesses.

What Triggered the Breakdown in 2023

The dispute began in September 2023. Trudeau publicly accused Indian government agents of involvement in Nijjar’s killing outside a gurdwara in Surrey, British Columbia.

India had labeled Nijjar a terrorist and claimed he led the banned Khalistan Tiger Force. India rejected Trudeau’s claim as “absurd” and blamed Canada for allowing anti-India extremists to operate freely.

Canada responded by expelling six Indian diplomats. India hit back by removing its acting High Commissioner and five others.

Tensions grew worse in October 2024. Canadian authorities directly accused India’s High Commissioner Sanjay Kumar Verma and five other officials of being involved. When Canada asked India to waive their diplomatic immunity, New Delhi refused and withdrew its entire diplomatic team.

On October 14, 2024, the Royal Canadian Mounted Police (RCMP) openly accused Indian agents of carrying out a criminal plot in Canada. But a Canadian commission in January 2025 found “no definitive link” between Nijjar’s killing and a foreign government.

Protests Greet Modi, But Carney Holds Firm

Modi’s visit to Canada drew protests from pro-Khalistan groups in Calgary. Protesters tore Indian flags and raised slogans against Modi’s presence.

Despite this, Carney stood by his decision to invite Modi. He said India is a key global partner on issues like artificial intelligence, energy security, and counterterrorism.

Carney said, “India has been coming to the G7 since 2019 and it’s a testament to the importance of your country, to your leadership, and to the importance that we look to tackle together.”

Strong Trade and Business Links Continue

Even during the diplomatic freeze, trade between India and Canada stayed strong. In 2023, India exported goods worth USD 7.53 billion to Canada. Canada’s exports to India totaled CAD 5.12 billion.

Their total merchandise trade reached CAD 12.65 billion that year. From January to August 2024, it stood at CAD 8.55 billion. India exported CAD 5.22 billion, while imports from Canada totaled CAD 3.33 billion.

Services trade was also strong. In 2023, it reached CAD 13.49 billion. India exported CAD 3.36 billion in services and imported CAD 10.13 billion. Between January and June 2024, this trade touched CAD 7.85 billion.

Canada Invests Big in Indian Economy

Canada remains one of India’s largest foreign investors. Canadian pension funds have poured over CAD 75 billion into India. More than 600 Canadian companies currently operate in India, while over 1,000 others are exploring the market.

On the other hand, Indian firms in Canada work across IT, banking, healthcare, mining, and financial services.

India exports pharmaceuticals, electronics, jewellery, engineering goods, seafood, and auto parts to Canada. It imports potash, minerals, pulses, aluminium, industrial chemicals, iron scrap, and gemstones from Canada.

During the G7 talks, both leaders discussed future cooperation in clean energy, digital infrastructure, AI, fertilizer and food security, and critical mineral supply chains.

Indian Diaspora Acts as a Strong Bridge

Canada is home to 1.8 million people of Indian origin and nearly 1 million non-resident Indians. Together, they make up over 3 percent of the country’s population. This community has traditionally acted as a key link between India and Canada.

More than 427,000 Indian students study in Canada — the highest number from any single country. India remains the top source of international students in Canada.

India Seeks Action on Extremists in Canada

While relations are improving, New Delhi remains concerned about pro-Khalistan extremists in Canada. India has asked Canada to act on several long-pending extradition requests.

These include individuals like Lakhbir Singh Landa, Gurjinder Singh, Gurpreet Singh, Gurjeet Singh, and Arshdeep Singh Gill, who face terrorism-related charges in India.

Modi’s meeting with Carney could help reopen discussions on these sensitive issues. However, they are expected to remain politically difficult for Canada.

PM Modi also shared his experience on X, "I had a productive meeting with Prime Minister Mark Carney. I congratulated him and the Canadian Government on the successful hosting of the G7 Summit. India and Canada share a deep commitment to democracy, freedom, and the rule of law. PM Carney and I look forward to working closely to further strengthen the India-Canada partnership. We see great potential for collaboration in key areas such as trade, energy, space, clean technology, critical minerals, and fertilisers."

Had an excellent meeting with Prime Minister Mark Carney. 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… pic.twitter.com/QyadmnThwH

— Narendra Modi (@narendramodi) June 17, 2025