New Delhi/ Alberta, 18.06.25: At the 2025 G7 Summit held in Canada, a significant diplomatic breakthrough occurred as Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney met to mend bilateral ties. This Modi-Carney G7 meeting, taking place on the sidelines of the global summit, marked a pivotal moment in restoring diplomatic relations between the two nations. This Modi-Carney G7 Meet can be gamechanger in restoring India – Canada diplomatic relationship.
Amid months of tension, this development is being viewed as a decisive step towards reconciliation, with both countries agreeing to reinstate High Commissioners, resume full diplomatic engagement, and open new avenues for cooperation. This article explores the background, key outcomes, and future implications of the Modi-Carney meeting.
Background: Strained India-Canada Relations
What Caused the Diplomatic Rift?
India-Canada relations hit a historic low in 2023 after Canadian Prime Minister Justin Trudeau alleged Indian involvement in the assassination of Hardeep Singh Nijjar, a Khalistani separatist, on Canadian soil. India dismissed these allegations as “absurd” and responded with a series of diplomatic retaliations, including expelling Canadian diplomats and suspending visa services.
Tensions intensified throughout 2023 and 2024, with both nations adopting hardline rhetoric, severely impacting not only diplomatic relations but also trade, student migration, and cultural exchanges. The situation demanded a change in tone, and with the leadership shift in Canada — Mark Carney replacing Trudeau — the opportunity for resetting bilateral ties finally emerged.
G7 Summit 2025: A Platform for Diplomacy
Why the G7 Summit Was the Right Moment
The 2025 G7 Summit, hosted in Ottawa, was designed as a forum for major economic powers to discuss global challenges like climate change, economic recovery, and geopolitical stability. For India and Canada, however, it served as neutral ground to hold a side meeting of strategic importance.
The Modi-Carney meeting was not just symbolic; it carried substance and seriousness. This high-profile bilateral engagement at a multilateral summit provided both leaders the diplomatic cover and international audience needed to announce a thaw in tensions.
Key Outcomes of the Modi-Carney G7 Meet
1. Restoration of High Commissioners
The most notable outcome is the agreement to restore High Commissioners. This move signals a return to full diplomatic engagement, enabling embassies to function at full capacity and revive stalled bilateral dialogues.
2. Reinstatement of Visa and Consular Services
Both countries agreed to normalize visa operations, which had been partially suspended during the crisis. This decision is critical for thousands of Indian students, tourists, and professionals who had faced travel uncertainties over the past year.
3. Joint Task Force to Address Extremism
India has long expressed concerns over pro-Khalistan extremism in Canada. As part of the new understanding, Canada has agreed to form a joint task force with Indian officials to monitor and curb extremist activity, particularly those that impact Indian security interests.
4. Reviving Trade Talks
The meeting also focused on reviving negotiations for the Comprehensive Economic Partnership Agreement (CEPA). This long-delayed agreement holds the potential to boost trade volumes between the two economies, especially in tech, clean energy, agriculture, and education.
5. Collaborative Educational Programs
India and Canada plan to expand collaboration in higher education, including dual-degree programs, research exchange, and STEM partnerships. Canadian universities host over 230,000 Indian students, and this agreement will ease uncertainties and boost confidence in bilateral academic ties.
Why This Reset Matters: Strategic, Economic & Cultural Significance
Strategic Realignment in Indo-Pacific
India’s growing influence in the Indo-Pacific region makes it an essential partner for Canada’s new foreign policy vision under Carney. By mending ties with India, Canada repositions itself in line with U.S. and G7 strategies for a free, open, and secure Indo-Pacific.
Economic Interdependence
Despite political differences, India and Canada are economically complementary. India’s vast consumer market and Canada’s technological and energy capabilities make them natural partners. The restoration of full diplomatic relations is expected to accelerate bilateral trade beyond the current $10 billion mark.
Cultural and People-to-People Ties
Canada is home to 1.4 million Indo-Canadians, making it one of the largest Indian diasporas in the world. Mending diplomatic ties restores cultural confidence, religious harmony, and societal integration — essential pillars in sustaining long-term relationships.
Challenges Ahead Despite Modi-Carney G7 Meet: Diplomatic Rebuilding Won’t Be Easy
Lingering Mistrust
Although the two leaders shook hands and smiled for the cameras, deep-rooted mistrust remains, particularly concerning national security and diaspora extremism. The joint task force initiative is a step in the right direction but will require consistent monitoring and transparency.
Domestic Political Pressures
Both Modi and Carney will face domestic political scrutiny for their overtures. While Modi is seen as strong on national security, any perception of compromise could draw criticism. On the other hand, Carney may face opposition from pro-Khalistan constituencies in Canada.
Need for Sustainable Engagement
Sustaining this momentum will require more than diplomatic meetings. It demands a multi-level approach involving ministries of trade, foreign affairs, education, and defense. Bilateral visits, parliamentary exchanges, and civil society involvement will be crucial.
Global Reaction and Strategic Implications after Modi-Carney G7 Meet
G7 Leaders Welcome the Move
Leaders from the United States, United Kingdom, France, and Japan welcomed the India-Canada reset. U.S. President endorsed the decision, calling it a “win for multilateral diplomacy.” European leaders viewed the development as a stabilizing factor for the G7’s broader Indo-Pacific agenda.
A Template for Conflict Resolution
The Modi-Carney meet serves as a diplomatic case study for managing tensions between democracies. It underlines how mutual interests, when combined with strategic timing and international platforms, can help resolve deep-rooted issues.
Modi-Carney G7 Meet: Summary
What happened between Modi and Carney at the G7 Summit 2025?
India and Canada agreed to restore High Commissioners and normalize diplomatic relations after a meeting between PM Modi and PM Carney at the G7 Summit in Canada.
Did India and Canada resolve their issues in 2025?
Yes, after months of strained ties, the countries agreed to resume visa services, set up a joint task force against extremism, and reopen trade talks.
Is the India-Canada relationship improving now?
Yes, with the recent Modi-Carney meeting, both nations are working on rebuilding trust, enhancing trade, and strengthening educational ties.
FAQs – Modi-Carney G7 Meet
Q1: What triggered the diplomatic crisis between India and Canada?
Answer:
The crisis began in 2023 when Canadian PM Trudeau alleged Indian involvement in the killing of Khalistani separatist Hardeep Singh Nijjar. India rejected the claim, leading to expulsion of diplomats and suspended services.
Q2: What role did the G7 Summit 2025 play in India-Canada reconciliation?
Answer:
The G7 Summit in Ottawa provided a neutral platform where PM Modi and PM Carney met to resolve tensions, announce restoration of High Commissioners, and commit to deeper cooperation.
Q3: How will this impact Indian students in Canada?
Answer:
With visa and consular services resuming, Indian students will face fewer travel restrictions and more educational opportunities, especially in STEM and dual-degree programs.
Q4: Will the India-Canada trade agreement resume?
Answer:
Yes, both nations have agreed to revive CEPA negotiations, aiming to enhance trade in tech, energy, agriculture, and education sectors.
Q5: Is Khalistan extremism still a concern?
Answer:
Yes, but both governments have pledged to monitor the situation closely through a joint task force, aiming to reduce extremist influence while preserving freedom of speech.
Conclusion
The Modi-Carney G7 Meet 2025 has opened a new chapter in India-Canada relations. After years of distrust and diplomatic hostilities, both countries have signaled a renewed commitment to dialogue, partnership, and progress. While challenges remain, the decision to restore High Commissioners and engage in multilateral collaboration sets a strong precedent for conflict resolution between modern democracies.
As India positions itself as a global power and Canada recalibrates its foreign policy under new leadership, the thaw in relations not only benefits the two nations but also enhances the stability of the international democratic order.
Read: Modi in Canada for G7 2025: Big Talks on AI, Energy, Ties
