India and Canada agreed on Tuesday to return ambassadors to each other's capitals, turning a page on a bitter spat over an assassination as Canada's new leader welcomed counterpart Narendra Modi.
Canadian Prime Minister Mark Carney and India's Prime Minister Narendra Modi shake hands during the G7 Leaders' Summit in Kananaskis, Canada, on June 17, 2025. — Reuters
Prime Minister Mark Carney, who took office in March, invited Modi to the Canadian Rockies as a guest at the summit of the Group of Seven major economies.
Carney's predecessor Justin Trudeau last year publicly accused India of involvement in the assassination of a Sikh separatist on Canadian soil and expelled the Indian ambassador, triggering a furious reciprocal response from India.
Carney and Modi agreed that the two countries would name new high commissioners, as ambassadors are known between Commonwealth nations, in hopes of restoring normal operations for citizens and businesses.
Carney said he hoped the meeting would "provide the necessary foundations to begin to rebuild the relationship, based on mutual respect, sovereignty, trust."
"I would describe it as foundational -- as a necessary first step, a frank, open exchange of views around law enforcement, transnational repression," he told a news conference.
He noted that India is invited each year to G7 summits of major industrial democracies, pointing to the size of its economy.
The row had severely impeded diplomatic services between the two countries, which traded $9 billion in 2023 and have close cultural ties due to the vast Indian diaspora in Canada.
Canada had to suspend in-person services at all missions in India outside its embassy in New Delhi.
Politically sensitive
Modi took a conciliatory tone as he met Carney at the mountain resort, saying that both Canada and India were "dedicated to democratic values."
"The relationship between India and Canada is very important in many ways," Modi said.
He congratulated Carney on guiding his Liberal Party to an election victory and voiced confidence that going forward, "India and Canada will work together to make progress in many areas."
Sikh protesters rallied on the streets of Calgary, the closest large city to the summit, as many criticized Carney's inclusion of Modi, who is accustomed to invitations to major international gatherings despite criticism of his Hindu nationalist government's human rights record.
The left-wing New Democratic Party, the fourth largest party in parliament which is not formally part of Carney's government, denounced the invitation to Modi and pointed to allegations of Indian surveillance against its former leader Jagmeet Singh, who is Sikh.
"Continuing to engage Modi's government without accountability undermines all efforts to defend human rights, transparency, and the rule of law," it said in a statement before the visit.
Canada is home to the largest Sikh population outside India. With some two percent of Canadian population and clustered in suburban swing areas, the community has exerted growing political influence.
Hardeep Singh Nijjar, a naturalized Canadian citizen who advocated for an independent Sikh state called Khalistan, was shot dead in the parking lot of a Sikh temple in British Columbia in 2023.
Trudeau accused India of direct involvement. Canada has accused India of directing a broad campaign of intimidation against Sikh activists in the country.
India denied involvement in the killing and said Canada should take more action against violent advocates for Khalistan, which has been reduced to a fringe movement inside India.
Carney declined to say if he specifically mentioned Nijjar's case in his talks with Modi, noting that it was the subject of ongoing litigation.
The United States, which has a warm relationship with India, also accused an Indian agent of involvement in an unsuccessful plot against a Sikh separatist on US soil but addressed concerns more quietly than Trudeau.