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Last Updated: The Modi-Carney meeting is a reminder that mature democracies can differ, even sharply, and still find a way back to cooperation In a significant development for bilateral diplomacy, India and Canada have decided to reinstate high commissioners in each other's capitals, marking an important step towards normalising relations after nearly two years of frosty ties. This shift comes on the sidelines of the Group of Seven (G7) summit held in Kananaskis, Alberta, where Prime Minister Narendra Modi and his Canadian counterpart Mark Carney met and pledged to work together to strengthen cooperation based on mutual respect and sovereignty. For two democracies with long-standing economic, educational, and people-to-people ties, the fallout over the 2023 killing of Hardeep Singh Nijjar, a Canadian citizen and pro-Khalistan separatist leader, had pushed relations to an alarming low. The controversy, stoked by then-Prime Minister Justin Trudeau's public accusation that Indian agents were involved in the killing, triggered a diplomatic tit-for-tat, with both nations expelling each other's diplomats. The episode poisoned a relationship that was already fraught with tensions over Sikh extremism and Ottawa's perceived indifference to New Delhi's concerns. The arrival of Mark Carney, an experienced figure with a globalist outlook, appears to have created the space for a reset. His meeting with PM Modi, described by the Indian leader as 'excellent," was accompanied by statements from both sides that highlighted a commitment to the rule of law, respect for sovereignty, and mutual cooperation in areas like trade, energy, critical minerals, and space. Carney's invitation to Modi for the G7 summit, extended over a phone call, helped dispel speculation about Canada's posture and conveyed seriousness about rebuilding trust. The Indian government has consistently voiced its frustration over Canada's inability or unwillingness to curb the activities of pro-Khalistan elements who glorify violence and extremism under the banner of free speech. Posters depicting Indian diplomats as 'enemies" and open calls for 'justice" against Indian officials have angered New Delhi. These groups, however marginal, hold symbolic power and occasionally shape Canada's domestic politics, particularly in constituencies where Sikhs form a sizeable voting bloc. Trudeau's Liberal government often walked a tightrope on this matter, citing democratic freedoms while failing to clamp down on separatist advocacy. Carney, though also from the Liberal Party, seems poised to chart a more pragmatic and less ideologically constrained path. Analysts have observed a 'repositioning" within Canadian politics on this front, with even the Conservative Party increasingly recognising the costs of alienating India, a country whose global economic clout and geopolitical importance continue to rise. Strategic Recalibration, Not Ideological Reconciliation The reinstatement of high commissioners should be viewed more as a strategic recalibration than a deep ideological reconciliation. Both countries are responding to a shifting global order where alliances are becoming more transactional, and national interest trumps legacy grievances. For India, Canada's vast reserves of critical minerals like lithium and cobalt present an opportunity to diversify supply chains in support of its green transition and electric vehicle ambitions. For Canada, tapping into India's massive market, youthful workforce, and rising geopolitical importance is too crucial to ignore. Trade, education, and people-to-people ties are the natural areas for revitalisation. Before the diplomatic freeze, India was Canada's 10th-largest trading partner, and over 300,000 Indian students were enrolled in Canadian universities. Visa delays, uncertainty, and safety concerns had dampened this engagement. A thaw in relations could see the revival of both commercial and educational links. Indeed, Mishra of the Observer Research Foundation points out that 'Carney has gone ahead and opened diplomatic channels. Many things were stuck between the two countries, including visa processes and people-to-people mobility." With the formal reinstatement of diplomats, one can expect stalled trade negotiations and student inflows to gather momentum again. The Geopolitical Layer The India-Canada rapprochement must also be viewed in the context of broader geopolitical alignments. Canada, under Carney, appears increasingly aligned with the United States' Indo-Pacific strategy, in which India plays a pivotal role. A deteriorating relationship with New Delhi would not only hurt Ottawa's economic prospects but could also complicate its standing within Western alliances. Moreover, as tensions with China persist, both Canada and India have reasons to explore deeper cooperation in tech, defence, and critical infrastructure. Meanwhile, PM Modi's participation at the G7 summit despite protests by Khalistani groups highlights New Delhi's determination not to let fringe voices derail state-to-state engagement. The protests, which were small and geographically removed from the summit venue, were largely ignored by both governments. That in itself sends a message: that diplomacy will not be dictated by diaspora-based activism. Lessons For Diaspora Politics One of the most important takeaways from this episode is the need to strike a balance between diaspora engagement and the sovereignty of home countries. While countries like Canada take pride in their multicultural societies, they must draw a firm line when free speech morphs into advocacy of violence or support for terrorist ideologies. India, too, must engage diaspora communities with a mix of soft power and proactive diplomacy, rather than coercive rhetoric. The Modi-Carney meeting, therefore, is a reminder that mature democracies can differ, even sharply, and still find a way back to cooperation. The decision to reset ties offers a model for conflict resolution in a multipolar world where rigid ideological positions often give way to pragmatic diplomacy. Moving Forward There are bound to be challenges ahead. The Sikh separatist issue hasn't disappeared—it has merely been parked. Both nations will need to invest in building trust at multiple levels: diplomatic, political, cultural, and commercial. The resumption of high-level dialogue must be matched by consistent action on issues like counter-extremism, immigration facilitation, and trade liberalisation. India and Canada share values of democracy, pluralism, and the rule of law. They are bound not just by treaties, but by people, commerce, and common aspirations. With the acrimony of the Nijjar controversy receding into the rearview mirror, this diplomatic thaw offers a second chance, perhaps the last in the near term, for the two countries to build a resilient and forward-looking partnership. top videos View all In a fractured world, such pragmatic resets are not only welcome, they are essential. The writer is a technocrat, political analyst, and author. He pens national, geopolitical, and social issues. His social media handle is @prosenjitnth. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18's views. About the Author Prosenjit Nath The writer is an Indian technocrat, political analyst, and author. tags : g7 summit India-Canada Ties Narendra Modi view comments Location : New Delhi, India, India First Published: June 21, 2025, 09:46 IST News opinion Opinion | India And Canada Reset Relations: A Diplomatic Thaw After Years Of Tension Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.