Diplomatic Freeze Thaws After Two Years

Two years after a sharp deterioration in bilateral relations over political and security tensions, India and Canada are taking concrete steps to revive their diplomatic engagement. The meeting between Prime Minister Narendra Modi and his Canadian counterpart, Mark Carney — held on the sidelines of the G-7 Summit outreach session in Kananaskis, Canada — marked a symbolic and strategic breakthrough.

The Foreign Secretary of India, Vikram Misri, confirmed that the two leaders agreed to restore the positions of High Commissioners in New Delhi and Ottawa “at an early date.” This is the first formal diplomatic gesture of reconciliation after the diplomatic tit-for-tat expulsions and freezing of bilateral cooperation in 2023.

High-Level Appointments and Policy Reset

India has reportedly already nominated Ambassador to Spain Dinesh Patnaik as its High Commissioner to Canada. Canada is expected to process its nominee by July.

Beyond diplomatic representation, the two sides agreed to restart visa services — a major relief for Indian students, families, and professionals impacted by the two-year freeze.

Senior-level dialogues will also resume on trade, connectivity, education, people-to-people exchanges, and emerging sectors, including clean energy, digital technologies, and critical minerals.

Trade Talks Regain Momentum

A key highlight of the talks was the decision to revive stalled negotiations on the Early Progress Trade Agreement (EPTA), which is seen as a stepping stone toward a more ambitious Comprehensive Economic Partnership Agreement (CEPA).

Discussions on CEPA were previously stalled due to deteriorating political trust and domestic sensitivities on both sides. With renewed political will, both Prime Ministers have now tasked officials to accelerate progress on trade liberalisation, including market access, regulatory alignment, and investment flows.

Strategic Collaborations in Focus

In their talks, the leaders discussed collaborative potential in several high-priority domains:

• Clean Energy and LNG: Especially relevant given India’s energy diversification goals and Canada’s vast hydrocarbon resources.

• Digital Transformation and AI: Tapping into Canada’s research and India’s tech manpower.

• Food Security and Critical Minerals: Aligning Canada’s supply capabilities with India’s raw material needs for electronics, EVs, and batteries.

• Higher Education and Skilled Mobility: With over 300,000 Indian students in Canada, streamlining education and work visa norms is key.

Khalistan Issue Not Raised Publicly, But Underlying Tensions Remain

Notably absent from the public readouts was any direct mention of Hardeep Singh Nijjar, a Khalistani separatist leader whose 2023 killing in Canada triggered an acrimonious breakdown in ties. While Prime Minister Carney avoided explicit references, he did stress concerns over “transnational crime and repression” during broader G-7 discussions, signalling continued Canadian sensitivity over sovereignty and diaspora issues.

For its part, India has long maintained its demand for Canadian accountability in curbing anti-India extremist activity emanating from Canadian soil.

G-7’s Collective Stand on Transnational Repression

The G-7 Summit, which hosted India as a special invitee, also released a joint statement condemning violence, harassment, and repression of dissidents and journalists. Though general, the reference reflects broader concerns among democratic countries about authoritarian overreach and cross-border security threats.

India and Canada, both democracies, have pledged to maintain a rules-based international order, even as they grapple with the internal balancing of civil liberties and national security.

Conclusion: A Constructive Reset Amid Fragile Trust

The decision to restore diplomatic and functional relations signals a carefully calibrated reset. While profound trust deficits remain — particularly over security cooperation and diaspora politics — both sides appear committed to rebuilding ties pragmatically, with trade, technology, and mobility forming the pillars of renewed engagement.

This reconciliation presents both countries with the opportunity to transition from conflict management to strategic collaboration—a necessity in a volatile and increasingly interdependent global order.