What happened?
India and Canada have agreed to restore high commissioners to each other’s capitals as a first step towards normalising frozen ties , following a meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G7 Leaders’ Summit in Kananaskis, Canada, early today (June 18, 2025, Indian time). This marks the first substantive bilateral engagement between Indian and Canadian leaders since Modi’s tense meeting with then Prime Minister Justin Trudeau during the G20 summit in New Delhi in 2023. The high commissioners were expelled in October 2024 in tit-for-tat moves, after Canadian authorities alleged evidence linking Indian government agents to “widespread violence” in Canada. Both leaders agreed to take “calibrated steps” to stabilise the relationship, starting with the reinstatement of high commissioners “at an early date”. On the trade front, both sides decided to revive negotiations for a Comprehensive Economic Partnership Agreement (CEPA), which had been paused. Discussions also covered cooperation in clean energy, digital technology, artificial intelligence, supply chains, and critical minerals.
Why it matters to India
This agreement to restore high commissioners and resume trade talks is a crucial step towards mending the strained relationship between India and Canada. Normalising diplomatic ties will facilitate regular consular services and strengthen people-to-people connections, which are vital for India with its large diaspora abroad. Reviving CEPA negotiations can unlock significant economic opportunities, boosting trade and investment in key sectors like clean energy, digital transformation, artificial intelligence, and critical minerals, aligning with India’s economic growth and technological advancement goals. The discussions also highlight shared interests in promoting a free and open Indo-Pacific, which aligns with India’s strategic foreign policy objectives.