In a significant diplomatic breakthrough, Canada and India have agreed to appoint new high commissioners and fully restore diplomatic relations after nearly two years of tensions. The announcement came during sideline meetings at the G7 Summit in Italy, where Prime Minister Justin Trudeau and Indian Prime Minister Narendra Modi engaged in what officials describe as “constructive dialogue.”
“This marks a turning point in our bilateral relationship,” said Foreign Affairs Minister Mélanie Joly in an exclusive statement to CO24 News. “Both nations recognize the importance of our historic partnership and the need to move forward with mutual respect.”
The diplomatic rift began in September 2023 when Canada alleged Indian government involvement in the assassination of Sikh activist Hardeep Singh Nijjar on Canadian soil. India vehemently denied these allegations, calling them “absurd” and “politically motivated.” The fallout led to the expulsion of several diplomats from both countries and a near-complete breakdown in high-level communications.
According to sources familiar with the negotiations, the agreement includes commitments to enhanced security cooperation and intelligence sharing. “Both countries have agreed to establish a joint working group on counterterrorism and transnational crime,” revealed a senior Canadian government official who requested anonymity due to the sensitivity of the discussions.
Trade implications of the renewed relationship are substantial. Bilateral trade between Canada and India exceeded $8.8 billion in 2024, despite diplomatic tensions. Economic analysts at the Royal Bank of Canada project this figure could increase by 30% within two years following the restoration of full diplomatic relations.
“The timing couldn’t be better for Canadian businesses,” explained Dr. Amrita Singh, Director of the Indo-Canadian Business Council. “With India’s economy growing at over 7% annually, Canadian exporters have been eager to expand their footprint in what is now the world’s third-largest economy.”
The agreement also addresses ongoing immigration and visa processing challenges that have affected thousands of Indian students and workers seeking opportunities in Canada. Immigration Minister Marc Miller indicated that visa processing times for Indian nationals should normalize within 60 days.
Public reaction in both countries has been cautiously optimistic. While government supporters praise the pragmatic approach to restore relations, critics question whether fundamental issues have been adequately addressed. Opposition leader Pierre Poilievre described the agreement as “necessary but insufficient,” calling for greater accountability regarding the original allegations.
As both nations prepare to name their new high commissioners in the coming weeks, questions remain about how this diplomatic reset will address the unresolved tensions that led to the breakdown. With federal elections approaching in Canada, the Trudeau government faces the delicate task of balancing diplomatic pragmatism with domestic political considerations.
As Canada and India work to rebuild trust, one question lingers in diplomatic circles: Can this renewed relationship overcome the deep suspicions of the past two years, or will unresolved issues continue to cast a shadow over one of Canada’s most consequential bilateral relationships in the Indo-Pacific region?
