India and Canada to reinstate high commissioners by late 2025, restoring full embassy functions after 2023 expulsions; follows Modi-Carney G7 pact in June.
NSAs Doval and Drouin agree to bolster intelligence sharing, combat Khalistani extremism, and tackle transnational crime in New Delhi talks.
Restart EPTA negotiations toward CEPA, targeting trade growth in minerals and energy; addresses diaspora support amid $8B annual exchanges.
India and Canada Chart Path To Reconciliation: Agree On Measures To Restore Strained Ties
From diplomatic freeze to renewed dialogue—Modi-Carney pact revives envoys, security talks, and trade negotiations, signaling thaw after Nijjar killing fallout under Trudeau's watch
Summary
India and Canada have outlined a series of concrete measures to reset bilateral ties, including the swift return of high commissioners, enhanced counter-terrorism cooperation, and the revival of stalled trade talks. The agreements, building on a pivotal June meeting between Prime Minister Narendra Modi and his Canadian counterpart Mark Carney at the G7 Summit in Kananaskis, were further advanced through high-level consultations in New Delhi last week between National Security Advisors Ajit Doval and Nathalie Drouin.
This diplomatic pivot comes after a nadir in 2023, when then-Canadian Prime Minister Justin Trudeau's allegations of Indian involvement in the killing of Khalistani separatist Hardeep Singh Nijjar in British Columbia triggered a cascade of expulsions, visa curbs, and trade suspensions—charges New Delhi vehemently rejected as baseless and politically motivated.
The Ministry of External Affairs (MEA) hailed the outcomes as a "new chapter" in relations, rooted in shared democratic values, rule of law, and mutual respect for sovereignty. Key among the measures is the immediate posting of envoys to each other's capitals, with names already exchanged, marking the first full diplomatic staffing since the row escalated in October 2023. This step addresses capacity constraints at missions, facilitating smoother support for the burgeoning Indian diaspora in Canada—over 1.6 million strong, including students and professionals—and bolstering people-to-people exchanges strained by earlier visa delays.
Economically, the pact revives negotiations for an Early Progress Trade Agreement (EPTA), a precursor to a full Comprehensive Economic Partnership Agreement (CEPA), which had stalled in 2023. With bilateral trade hovering around $8 billion annually—India as Canada's 10th largest partner—the focus is on untapped potential in sectors like critical minerals, clean energy, and agriculture, amid global shifts including U.S. tariffs and Indo-Pacific tensions with China. Modi and Carney underscored "growing economic complementarities," with plans for senior ministerial engagements to accelerate momentum.
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