India and Canada signal a reset of relations nearly two years after assassination of Sikh separatist

Mark Carney, Prime Minister of Canada, welcomes Narendra Modi, Prime Minister of India, ahead of the working session with the Outreach Partner Countries at the G7 Summit in Canada

Wednesday | June 18, 2025

India and Canada signaled a major thaw in their diplomatic freeze on Tuesday, agreeing to restore full diplomatic ties and reestablish high commissioners in each other’s capitals. This significant development comes nearly two years after relations between the two countries deteriorated sharply following allegations from Ottawa that Indian intelligence agents were involved in the assassination of Hardeep Singh Nijjar, a Canadian citizen and vocal Sikh separatist, in British Columbia in June 2023.

The breakthrough was announced following a bilateral meeting between Indian Prime Minister Narendra Modi and Canada’s new Prime Minister, Mark Carney, on the sidelines of the Group of Seven (G7) summit held in the Canadian Rockies. It marked the first high-level engagement between the two governments since the diplomatic fallout began.

According to a statement from the Canadian Prime Minister’s Office, both leaders agreed to “designate new high commissioners, with a view to returning to regular services to citizens and business in both countries.” The move is intended to normalize consular and trade functions, which were disrupted following the crisis in relations.

The rupture began when then-Prime Minister Justin Trudeau publicly accused India of involvement in Nijjar’s killing. Ottawa said it had “credible allegations” and claimed to have shared intelligence with New Delhi. India, in turn, firmly denied the charges, calling them “baseless and politically motivated,” and responded by accusing Canada of harboring extremists and turning a blind eye to anti-India rhetoric and activities within its borders. The row led to tit-for-tat expulsions of diplomats, suspension of visa services, and a hardening of rhetoric on both sides.

Modi’s invitation to attend the G7 summit — despite India not being a member of the group — was extended by Carney earlier this month. The Canadian leader emphasized the importance of including the world’s most populous democracy in global discussions on pressing issues like climate change, economic security, and geopolitical tensions. Other non-G7 invitees included leaders from Brazil, South Africa, Mexico, South Korea, Ukraine, and Australia.

During their meeting in Alberta, there were no visible signs of lingering tension. Carney described it as a “great honor” to welcome Modi to the summit, underscoring India’s global significance and the value of its partnership. “India has been coming to the G7 I believe since 2018… and it’s a testament to the importance of your country, to your leadership and to the importance of the issues that we look to tackle together,” Carney said during a press interaction.

Prime Minister Modi echoed the positive tone, posting on social media platform X: “Had an excellent meeting with Prime Minister Mark Carney. 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 to add momentum to the India-Canada friendship.”

Notably absent from the joint remarks was any direct mention of Nijjar or the security tensions that followed his death. However, when asked by reporters about the murder during a press conference, Carney emphasized that a judicial process is underway and refrained from commenting further to avoid interfering with ongoing investigations. He later acknowledged in a media interview that he had previously discussed the Nijjar issue with Modi, though it was not addressed publicly during the summit.

Nijjar, a prominent figure in the Sikh diaspora, had long been associated with calls for the creation of Khalistan, an independent Sikh homeland carved out of India’s Punjab state. While support for Khalistan is outlawed and considered a national security threat by the Indian government, the movement maintains a degree of support among Sikh communities abroad, particularly in countries like Canada and the UK, where freedom of speech laws protect advocacy for separatism.

As the G7 summit unfolded in Alberta, Sikh protesters gathered in nearby Calgary, waving Khalistan flags and demanding justice for Nijjar. The demonstrations, though peaceful, underscored the continued sensitivities surrounding the issue and the tightrope both governments must walk in reengaging diplomatically.

Despite the controversy, the Modi-Carney meeting focused on forward-looking cooperation. According to Carney’s office, discussions touched on opportunities to deepen collaboration in key sectors such as digital technology, climate resilience, food security, and the supply chain of critical minerals — areas where both countries have complementary interests and strategic value.

While the agreement to restore diplomatic channels marks a crucial first step toward normalization, it also reflects a broader recognition by both Ottawa and New Delhi that cooperation — particularly in trade, technology, and global security — outweighs the cost of prolonged estrangement.

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