New Delhi: Eight months after expelling each other’s top envoys, India and Canada have agreed to restore high commissioners to each other’s capitals, as a first step towards normalising frozen ties. The announcement came following a meeting between prime minister Narendra Modi and Canadian prime minister Mark Carney on the sidelines of the G7 Leaders’ Summit in Kananaskis in Canada. The meeting took place early today (June 18), Indian time. This is the first substantive bilateral engagement between Indian and Canadian leaders since Modi’s tense meeting with then prime minister Justin Trudeau during the G-20 summit in New Delhi in 2023. It was at that meeting that Trudeau first raised the allegation of Indian government agents being involved in the killing of Khalistani separatist Hardeep Singh Nijjar, before going public a week later.FILE IMAGE: Canadian Prime Minister Justin Trudeau and Indian Prime Minister Narendra Modi at their meeting on the sidelines of the G20 summit in Delhi. Photo: Twittter/Justin TrudeauThe high commissioners were expelled a year later in October 2024 in tit-for-tat moves, when Royal Canadian Mounted Police (RCMP) alleged that there was evidence linking Indian government agents to “widespread violence” in Canada.A thaw had been anticipated after Modi accepted an invitation from Carney to attend the outreach session of the G7 summit – an invitation extended and accepted just a week before the event.After the meeting, Indian foreign secretary Vikram Misri said the two leaders agreed to take “calibrated steps” to stabilise the relationship, beginning with the reinstatement of high commissioners “at an early date”. “Other diplomatic steps will follow in due course,” he added.Canada’s official readout echoed this development, noting that the leaders had agreed to “designate new high commissioners” with a view to resuming regular consular services for citizens and businesses.On the trade front, both sides decided to revive negotiations that had been paused. “The two leaders also decided to instruct their officials to take it up at an early date,” Misri stated, referring to the long-suspended talks on a Comprehensive Economic Partnership Agreement (CEPA).Both readouts noted the importance of the broader strategic and economic relationship. Misri said the leaders had discussed cooperation in clean energy, digital technology, artificial intelligence, supply chains and critical minerals. The Canadian side similarly underscored shared interests in economic growth, supply chains, and the Indo-Pacific.The senior Indian diplomat noted that the bilateral relationship was based on “shared values, democracy and the rule of law, people to people contact, and many other commonalities”. The Canadian PM’s office statement stated that ties were based on “based upon mutual respect, the rule of law, and a commitment to the principle of sovereignty and territorial integrity”.In this image via PMO on June 17, 2025, Prime Minister Narendra Modi being welcomed upon his arrival at Calgary airport in Canada. Photo: Via PTI.A press release issued later by Ministry of External Affairs also expanded the mutual basis of the ties to “shared democratic values, respect for the rule of law. and commitment to upholding the principles of sovereignty and territorial integrity.”While the Indian statement focused on rebuilding bilateral ties, the Canadian readout highlighted that prime minister Carney had raised “priorities on the G7 agenda, including transnational crime and repression, security, and the rules-based order.” Though the statement did not explicitly link these issues to India, the mention suggests that Canada’s claim about Indian moves in Canada continue to be a point of discussion between the two governments.At a post-summit press conference, Carney stated that he raised the importance of law enforcement and tackling transnational repression. He repeated that since a judicial process was underway, he would be careful and not comment on the allegations by Canadian security agencies.Indian officials, meanwhile, did not indicate whether Modi raised what New Delhi views as its central grievance, which is, Canada’s tolerance of Khalistani separatist activities. It seemed that India was cautious not to let a meeting intended to be a diplomatic thaw be overshadowed by headlines suggesting it had pressed Canada on Khalistan.While Carney posted images with other world leaders on his official X account, neither he nor the Canada PMO’s official account had posted any photos with Modi at the time of publishing this report. The Indian prime minister has posted photos in posts on X.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, 2025A separate G7 joint statement on transnational repression stated that the leaders of the group of industrialised democracies were “deeply concerned”. “TNR [transnational repression] is an aggressive form of foreign interference whereby states or their proxies attempt to intimidate, harass, harm or coerce individuals or communities outside their borders,” it said.Among the G7 outreach invitees, India is the only country whom the host, Canada has accused of both “foreign interference” and involvement in “transnational crime”.The statement made no mention of India but said transnational repression “undermines national security, state sovereignty, the safety and human rights of victims, and principles of international law.”Meanwhile, the Canadian newspaper Globe and Mail reported on Tuesday (June 17) that Canada’s spy agency warned that New Delhi “remains a persistent foreign interference threat to this country” in its annual report to parliament tabled on Friday (June 13).The same day, British Columbia Premier David Eby announced that he would ask the federal government to designate the Indian gang led by Lawrence Bishnoi as a terrorist organisation. According to Canadian media, Eby noted that the gang had “self-identified” as being behind extortion threats targeting South Asian businesses in Canada.“This is a serious step. It gives police significant investigative tools. We don’t make this recommendation lightly, but this activity strikes at public confidence in the justice system, in our democracy and in the safety of community, and it erodes public confidence in the rule of law,” Eby said on June 17, the day Indian Prime Minister Narendra Modi arrived in Canada.Back in October, when Canadian security agencies first accused Indian government agents of orchestrating a “campaign” of violence, senior RCMP officials had alleged that the Bishnoi gang had been contracted to carry out attacks against critics of the Indian government on Canadian soil.During Modi’s brief visit to Calgary, anti-India protests were held in designated zones by supporters of Sikhs for Justice, a pro-Khalistani group banned as a terrorist organisation in India.Note: This article has been updated since publication.