India and Canada Reset Ties: From Diplomatic Chill to Strategic Cooperation

Introduction: A Diplomatic Freeze Begins to Thaw

India and Canada are embarking on a carefully calibrated diplomatic reset following nearly two years of tension that saw high-level expulsions, a breakdown of trust, and a major strain on bilateral engagement. The turning point came during Prime Minister Narendra Modi’s visit to Canada in June 2025, when he met with Canadian Prime Minister Mark Carney on the sidelines of the G7 summit in Kananaskis. The dialogue between the two leaders set the stage for renewed cooperation across multiple sectors, from trade and energy to mobility and strategic minerals.

Mr Jaiswal said that PM Modi's meeting with Mark Carney in Canada was a very productive | NDTV

From Tensions to Talks: The Nijjar Cloud

The diplomatic rift between the two democracies was triggered in 2023 when Canada accused India of involvement in the killing of Hardeep Singh Nijjar, a Canadian citizen and Sikh separatist leader. India rejected the charges as politically motivated. The incident led to a near-complete breakdown in communication between New Delhi and Ottawa, including the withdrawal of high commissioners and suspension of visa services.

Despite the lingering shadow of the Nijjar case—currently undergoing judicial scrutiny in Canadian courts—India has maintained that it respects Canada's legal process. At the same time, both nations now appear to be compartmentalizing the issue to avoid it overshadowing broader interests. Ministry of External Affairs spokesperson Randhir Jaiswal confirmed that while the judicial process must run its course, the two sides are actively working to strengthen bilateral engagement in key areas.

Rebuilding Diplomatic Channels

A major outcome of the Modi-Carney meeting was the decision to restore full diplomatic representation. India and Canada have agreed to reappoint high commissioners, resume visa and consular operations, and reestablish diplomatic mechanisms that had been frozen since the fallout. This step is not merely symbolic but foundational, enabling the smooth functioning of institutional and people-to-people ties.

The restoration of diplomatic services is especially significant for Indian students, tourists, and professionals in Canada, many of whom faced prolonged delays in visa processing and support. With diplomatic lines reopened, both governments are signaling a return to regular cooperation and communication.

Reviving Trade and Economic Engagement

One of the most promising areas of cooperation lies in trade. Even during the peak of diplomatic tensions, bilateral trade remained resilient, hovering around USD 9.4 billion in 2023. With diplomatic normalization underway, both countries have expressed interest in resuming negotiations on a comprehensive Free Trade Agreement (FTA). If successful, such a deal could unlock substantial gains in sectors including agriculture, manufacturing, pharmaceuticals, and information technology.

Canada is particularly keen to expand its exports of agricultural commodities like lentils and pulses to India, one of its largest markets. Meanwhile, India stands to gain from increased access to Canadian technology, machinery, and investment in emerging sectors.

Strategic Minerals and Clean Energy: A Shared Priority

Critical minerals have emerged as a major focal point in India-Canada ties. Canada’s abundance of essential resources such as lithium, cobalt, and rare earth elements aligns with India’s push to secure clean energy supply chains. As India ramps up its electric vehicle (EV) production and renewable energy targets under its "Make in India" and green energy initiatives, Canada is positioning itself as a reliable partner for raw materials, technology, and investment.

Joint ventures and strategic agreements in the clean energy space are also being explored. Canada’s expertise in hydropower and nuclear energy offers India valuable technical partnerships, especially as it aims to add 500 gigawatts of renewable capacity by 2030. With both countries seeking to reduce dependence on China-dominated supply chains, this mineral and energy collaboration could become a cornerstone of the renewed partnership.

Technology, Security, and Global Cooperation

The revived relationship is not limited to economics. India and Canada are also eyeing broader cooperation in areas such as cybersecurity, artificial intelligence, food security, and counterterrorism. Both leaders emphasized the importance of law enforcement dialogue and information sharing, particularly in a world where hybrid threats, disinformation campaigns, and technological espionage are on the rise.

The partnership is also expected to align on global platforms. Canada has strongly backed India’s participation in G7 forums, and both countries continue to work together in multilateral institutions such as the UN, WTO, and Commonwealth. These alignments reflect shared democratic values and a common vision for a rules-based international order.

Conclusion: Pragmatic Reset With Eyes on the Future

India and Canada are navigating a delicate but deliberate process of repairing a relationship that had reached its lowest point in recent history. The Nijjar case still hangs in the background, but both sides appear to have recognized that prolonged diplomatic isolation serves neither country’s interests.

By restoring full diplomatic relations, reviving trade negotiations, and collaborating on critical minerals and technology, India and Canada are laying the groundwork for a mature and multidimensional partnership. The recent thaw is not just a return to normalcy, but potentially the beginning of a more strategic, future-facing relationship—one that acknowledges past differences while working toward shared global priorities.

(Sources: NDTV, Financial Express)