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The G7 Summit 2025, hosted in Kananaskis, Alberta, became a key stage for diplomatic movement between India and Canada, two nations locked in tension since the killing of Hardeep Singh Nijjar in 2023. But this time, the tone was different.
With newly appointed Canadian Prime Minister Mark Carney taking the reins, the summit offered an opportunity to reset strained relations.
Mark Carney’s Shift: From Confrontation to Cooperation
Unlike his predecessor Justin Trudeau, Carney adopted a more measured tone. Speaking on the sidelines of the summit, Carney emphasized Canada’s intent to “rebuild ties based on mutual trust and trade interests” with India.
In a significant step, Canada and India agreed to restore full diplomatic ties, including reinstating their high commissioners, two years after they were withdrawn in the wake of the Nijjar controversy.
Carney’s pragmatic foreign policy marks a clear departure from Trudeau’s confrontational stance. While he did not dismiss concerns around Nijjar’s killing, his government signaled willingness to separate national security matters from long-term strategic ties with India.
Modi–Carney Meeting: A Turning Point
During a closed-door bilateral meeting, PM Narendra Modi welcomed Carney’s approach and reiterated India’s non-tolerance towards terrorism and separatist activity, particularly Khalistan linked groups operating from Canadian soil.
Sources confirmed that talks to resume trade negotiations and visa services were also initiated. India is keen to strengthen ties, especially in critical minerals, technology, food security, and clean energy all key G7 focus areas.
Khalistan Issue Reignites Amid CSIS Revelations
Even as diplomacy warmed up, the Khalistan issue remained front and center.
Just ahead of the summit, the Canadian Security Intelligence Service (CSIS) released a report admitting that "a small group of Khalistani extremists based in Canada have promoted violence in India." This confirmed long standing Indian concerns.
However, the same CSIS report also mentioned foreign interference threats from countries like India, suggesting a nuanced position by the Canadian government.
In response, Indian officials stated that India has never engaged in transnational repression, and instead urged Canada to take real action against radical outfits that use Canada as a base for anti-India operations.
Meanwhile, pro-Khalistan groups in Canada held demonstrations during the G7 summit, further polarizing public opinion and prompting security concerns.
While the summit focused on broader issues like AI regulation, climate change, and the Israel-Iran conflict, the India-Canada reset quietly captured headlines. The Western bloc issued a subtle joint statement expressing concern about transnational repression, without directly naming any country.
Diplomats say that the Carney-Modi engagement was one of the most meaningful moments of the summit, potentially setting a new tone for Indo-Canadian relations.