PM Modi Arrives in Canada for G7 Summit amid Signs of Diplomatic Thaw

Indian Prime Minister Narendra Modi arrived at Calgary International Airport on Tuesday (17) to attend the Group of Seven (G7) Summit in Kananaskis, Alberta, marking his first visit to Canada in nearly a decade.

The trip, made at the invitation of newly elected Canadian Prime Minister Mark Carney, comes amid cautious optimism that the two countries are inching toward a diplomatic reset after a period of significant strain.

Modi’s visit is brief, just under 24 hours, but symbolically potent. It carries the weight of unresolved political friction, particularly the fallout from the 2023 killing of Khalistani separatist Hardeep Singh Nijjar, which severely frayed India-Canada ties.

Yet, Modi’s arrival in Canada, a country he last visited in 2015, signals a potential turning point. The Indian leader’s participation in the G7 Outreach Sessions further underlines India’s growing clout on the global stage, despite its status as a non-member of the elite economic bloc.

From Estrangement to Engagement: A Fraught History

The diplomatic chill between India and Canada intensified in September 2023 when then-Prime Minister Justin Trudeau alleged that Indian operatives might have been involved in Nijjar’s assassination in Surrey, British Columbia.

The accusation, made publicly and on the floor of Parliament, stunned New Delhi, which swiftly condemned the claim as “absurd and motivated.” The tit-for-tat escalation that followed, Canada expelling Indian diplomats and India revoking the immunity of several Canadian officials, pushed relations to their lowest point in decades.

In the months that followed, diplomatic channels remained largely dormant, with both sides refraining from formal talks. India insisted that Canada rein in what it described as extremist elements operating freely on its soil, while Ottawa remained adamant about pursuing its investigation into the Nijjar case.

Trade negotiations were suspended and people-to-people ties, including student exchanges and immigration services, suffered setbacks.

However, the political landscape shifted dramatically in early 2025 when Carney, a former Bank of Canada and Bank of England governor, took over as prime minister.

Known for his pragmatism and globalist outlook, Carney extended an invitation to Modi for the G7 Summit, a move interpreted in diplomatic circles as a calculated gesture of conciliation.

Modi’s Arrival: Symbolism, Strategy and Signaling

As Modi disembarked from Air India One in Calgary, he was greeted by Canadian Foreign Minister Mélanie Joly and Alberta Premier Rachel Notley. The ceremonial welcome was intentionally low-key, a reflection of the delicate nature of the visit. Shortly after arrival, Modi posted on X (formerly Twitter):

“Landed in Calgary, Canada, to take part in the G7 Summit. Will be meeting various leaders and sharing my thoughts on important global issues. Will also be emphasising the priorities of the Global South.”

His itinerary includes participation in multiple G7 Outreach sessions, one-on-one meetings with key world leaders and a bilateral with Carney at the Pomeroy Kananaskis Mountain Lodge.

Indian officials have framed the visit as a “strategic outreach” opportunity to re-engage not just with Canada but with the wider Western alliance.

High-Stakes Bilateral Talks

Modi’s most closely watched engagement will be his bilateral meeting with Prime Minister Carney. According to Indian and Canadian diplomatic sources, the leaders are expected to address a host of issues ranging from trade and security cooperation to the politically sensitive Nijjar case.

One of the key proposals under discussion is the formation of a joint working group on transnational crime. This mechanism, if finalized, would aim to prevent contentious legal proceedings, such as the Nijjar investigation, from derailing broader diplomatic cooperation.

The working group would also serve as a platform for both countries to exchange intelligence, coordinate law enforcement efforts and manage politically sensitive cases more transparently.

Early discussions have already taken place between Indian agencies, including the National Investigation Agency (NIA) and their Canadian counterparts in the Royal Canadian Mounted Police (RCMP).

Both sides see the potential framework as a way to compartmentalize ongoing tensions while protecting long-term strategic interests.

Trade and Investment: Rekindling Momentum

Despite diplomatic friction, the economic relationship between India and Canada has remained resilient. Bilateral trade in goods reached $8.6 billion in 2024 and services trade added another $14.3 billion.

Canadian pension funds, among the largest in the world, have invested more than $75 billion in Indian infrastructure, renewable energy and technology sectors.

However, analysts argue that this relationship is still underperforming. Negotiations for an Early Progress Trade Agreement (EPTA) were suspended in late 2023 amid rising tensions.

With Carney, a seasoned economist, now leading Canada’s federal government, there’s renewed hope that stalled trade talks could be revived.

India’s ambassador to Spain, Dinesh Patnaik, is reportedly being considered as the next High Commissioner to Ottawa.

His appointment, if confirmed, would mark a shift toward more experienced, strategic diplomatic representation aimed at stabilizing and advancing bilateral priorities.

G7 Outreach: India’s Expanding Global Footprint

At the G7 Outreach Sessions, Modi is expected to take part in panels and discussions on key global challenges, including energy security, artificial intelligence governance and the restructuring of global supply chains.

The G7’s decision to invite India reflects the country’s increasing influence in multilateral forums, especially in the context of shifting power dynamics in the Indo-Pacific and global South.

A particularly critical moment will be a working luncheon on energy security. Modi is expected to highlight India’s push toward renewable energy and green hydrogen, while also addressing disruptions in oil and gas markets linked to regional conflicts and geopolitical instability.

India’s large consumer base, growing energy demand and climate commitments make it a pivotal voice in shaping future energy frameworks.

Khalistan: The Shadow That Still Looms

While progress is being made diplomatically, the issue of Khalistani separatism continues to cast a shadow. Pro-Khalistan groups have staged demonstrations in Toronto and Vancouver ahead of Modi’s visit and security has been heightened in Calgary and Kananaskis to prevent disruptions.

India has consistently expressed frustration over what it sees as a lack of Canadian action against extremist elements operating under the guise of free speech. Canada, in turn, remains cautious, balancing freedom of expression with domestic security concerns and the need to avoid alienating its influential Sikh diaspora.

Although the Nijjar case remains unresolved, both governments appear intent on moving forward without allowing the issue to dominate bilateral discussions.

The joint working group on transnational crimes could provide a diplomatic tool to manage this sensitive file without compromising judicial independence.

What Lies Ahead?

Modi’s visit, though short, could serve as a litmus test for whether India and Canada can rebuild mutual trust. If the proposed joint working group takes shape and trade negotiations are revived, this trip may mark the beginning of a more pragmatic, forward-looking phase in relations.

The presence of Modi at the G7 Summit also underscores India’s evolving role in the global order. Fresh from a third-term electoral victory, Modi comes to the table not as a guest, but as a leader of a major global economy with strategic leverage.

His ability to shape discussions on climate finance, digital technology and global governance adds a new layer of relevance to his participation.

 Why G7 Outreach Matters

The G7, comprising the U.S., UK, Canada, France, Germany, Italy and Japan, along with the EU, is a powerful bloc shaping the global economic and political agenda. While India is not a member, its invitation to the Outreach Sessions reflects its growing relevance in addressing transnational challenges.

For India, participation in such forums reinforces its positioning as a bridge between the Global North and South. For the G7, engaging India means gaining the insights and cooperation of a major democratic power that straddles the line between emerging and established economies.

A Diplomatic Inflection Point

Prime Minister Modi’s visit to Canada is far more than a diplomatic formality, it represents a careful recalibration of a complex and often contentious bilateral relationship.

The symbolism of his presence, the depth of the discussions and the potential outcomes, from a transnational crime framework to revived trade talks, will all be closely scrutinized in the weeks to come.

Whether this visit becomes a fleeting gesture or a foundational shift will depend on what both governments do after the photo ops end.

As Modi prepares to return to India, the thaw in relations offers a rare opportunity, for both countries, to build something more durable, mutually beneficial and resilient.