Summary
- PM Narendra Modi’s first foreign tour post-Operation Sindoor includes the G7 Summit in Canada, hosted by newly elected PM Mark Carney.
- Tensions over the 2023 Nijjar killing and Trudeau-era diplomatic fallout cast a long shadow on this potential reset.
- Canada’s push for trade diversification and India’s pivotal role in energy, uranium supply, and South Asian diaspora politics raise high-stakes questions for both nations.
A Cautious Reset: Modi’s Canada Visit Comes Amid Lingering Diplomatic Wounds
Prime Minister Narendra Modi’s arrival in Canada for the G7 Summit marks more than just diplomatic routine—it is a high-stakes maneuver in a geopolitical dance that has, until recently, been marred by deep mistrust. It is his first international engagement following India’s Operation Sindoor, the retaliatory airstrikes on Pakistani terror camps after the Pahalgam attack. Now, against the backdrop of this decisive assertion of India’s foreign posture, Modi’s presence at the summit hosted by Canada’s new Prime Minister Mark Carney signals cautious optimism—tempered by the ghosts of strained India-Canada relations under Justin Trudeau.
Scheduled for June 16–17 in Kananaskis, Alberta, this marks Modi’s sixth consecutive G7 participation. More significantly, it is Carney’s debut as PM—and his first opportunity to demonstrate whether Canada can move past the diplomatic freeze that followed accusations of Indian involvement in the killing of Khalistani separatist Hardeep Singh Nijjar in 2023. With trade, intelligence-sharing, AI-energy synergies, and Indo-Pacific balancing on the agenda, Modi’s bilateral with Carney may prove decisive in either cementing a true thaw—or exposing irreparable cracks.
PM @narendramodi ji alands in Canada for the 51st G7 Summit, with AI, critical minerals & global infra on agenda — also aiming to ease India-Canada tensions. #G7Summit #ModiInCanada #IndiaCanada pic.twitter.com/8fHEDypijk
— Bharat Sanghvi Jain (@rajamaka) June 17, 2025
India and Canada Face Off Their Past as G7 Summit Opens Dialogue
- Modi and Carney to meet on the sidelines of the G7, focusing on trade, technology, and trust restoration.
- MEA confirms intention to ‘reset’ relations based on mutual respect and shared democratic values.
- Carney’s election viewed as a diplomatic opportunity after Trudeau-era hostilities and visa suspensions.
As Prime Minister Modi lands in Kananaskis for the G7 Summit, all eyes are on his bilateral with Mark Carney—a man who has never led a government before but now holds the keys to rebuilding one of Canada’s most fraught relationships. India, with its formidable tech diplomacy, economic growth narrative, and geopolitical significance in Asia, is no longer a country to be courted perfunctorily. Carney knows this.
In March 2025, Carney replaced Justin Trudeau, whose strained tenure saw both sides expelling top diplomats and suspending trade talks after Canada blamed India for the 2023 killing of Nijjar in British Columbia. Carney’s campaign emphasized diplomatic pragmatism—especially with key economic partners like India.
MEA spokesperson Randhir Jaiswal’s June 12 briefing hinted at cautious progress: “India and Canada are vibrant democracies, bound by the rule of law. A reset will require sensitivity to each other’s concerns.” Notably, Modi accepted the G7 invitation after a personal call from Carney, showing political calculus and symbolic reconciliation. Whether this evolves into a substantive trust pact depends on how openly both leaders engage on intelligence sharing, Khalistan-linked extremism, and diaspora diplomacy.
The Shadow of Nijjar and Diaspora Dynamics Still Linger
- Accusations over Nijjar’s 2023 murder triggered a breakdown in India-Canada diplomatic relations.
- Trudeau’s administration expelled Indian diplomats; India responded with reciprocal action and trade freeze.
- Carney’s challenge lies in decoupling Sikh diaspora politics from national diplomacy.
Even as summit handshakes are exchanged, the memory of Hardeep Singh Nijjar’s killing and the firestorm that followed remains unresolved. Trudeau’s 2023 declaration that “Indian agents” orchestrated the assassination of the Canadian Khalistani separatist set off an unprecedented diplomatic rift. India denied involvement, accusing Canada of enabling extremism within its Sikh diaspora. Trade talks collapsed. Diplomatic ties froze. Visas were delayed.
Now Carney, once governor of the Bank of England and a globally respected economist, must untangle this volatile legacy. His government appears more willing to listen to Indian concerns—particularly over violent Khalistani fringe activism—and the appointment of a less polarizing foreign ministry team has helped.
However, with over 1.8 million Indian-origin residents in Canada, including more than 770,000 Sikhs, the diaspora’s political significance remains a double-edged sword. Both countries must now navigate this demographic complexity without derailing strategic cooperation.
Energy, Uranium, and the Untapped Trade Frontier
- Bilateral trade stands at $8.6 billion in 2024—well below potential.
- India-Canada uranium supply pact under review; Cameco may renew 2015 agreement.
- AI and energy nexus key topics at G7; India seen as critical for Canada’s diversification strategy.
Beyond geopolitics, there’s a strong economic logic to reconciliation. India is central to Canada’s broader plans for de-risking from China—particularly in sectors like critical minerals, AI, and energy security. One area already drawing renewed interest is uranium.
In 2015, India signed a $350 million deal with Cameco, Canada’s uranium giant, for the supply of 7 million pounds of uranium concentrate. That agreement expired—but reports suggest that a renewal is in the works. With global interest in nuclear energy as a climate-friendly alternative, this bilateral energy bond is more relevant than ever.
Meanwhile, AI and quantum tech dominate the G7 agenda. For a country like Canada—at the cutting edge of research but searching for implementation partners—India’s scale, workforce, and digital infrastructure present an unmatched value proposition.
Beyond the Summit: Will Modi and Carney Deliver a True Reset?
The G7 Summit in Canada may turn out to be more than a forum for global photo-ops. It is, in effect, a diplomatic stress test for both leaders. For Modi, it’s an opportunity to show that India remains a credible voice on the world stage—one that doesn’t shy away from engaging even with recent critics. For Carney, it is a test of statesmanship—to mend a rupture without appearing weak, and to signal that Trudeau-era performative politics is over.
The road to trust will be long and conditional. But it begins with dialogue, pragmatism, and clarity—qualities that this first Modi-Carney summit will either establish or fail to deliver.
