June 2025 — New Delhi / Toronto:
India’s participation in the recent G7 summit in Italy, at the invitation of the host nation and key Western allies, has sparked diplomatic chatter—particularly regarding Canada’s softening tone toward New Delhi. While India’s presence at the G7 is a testament to its rising global influence, political observers believe it also reflects Canada’s intention to reset its troubled relationship with India following months of diplomatic tension.
Backdrop: Months of Strained Relations
India G7 2025
Ties between India and Canada hit a low point in 2023 after Canadian Prime Minister Justin Trudeau alleged Indian involvement in the killing of Khalistani separatist Hardeep Singh Nijjar on Canadian soil. The accusation triggered a diplomatic standoff, including tit-for-tat expulsions of diplomats, visa delays, and a sharp freeze in bilateral engagement.
India strongly denied the allegations, calling them politically motivated and unsupported by concrete evidence. Relations remained frosty through most of 2024, with trade talks paused and official visits stalled. The fallout impacted not just diplomacy but also affected Indian students, businesses, and the broader Indo-Canadian diaspora.
G7 Invitation: A Geopolitical Move with Diplomatic Undertones
Though Canada was not the official host of the G7 Summit—Italy held that role—diplomatic sources suggest that Canada supported India’s inclusion as an observer country. Prime Minister Narendra Modi’s presence at the global gathering is seen as a subtle but strategic gesture, aimed at breaking the ice between the two nations.
A senior Canadian official, speaking off the record, noted:
“We acknowledge the importance of India not just globally, but also to Canada’s multicultural fabric. The G7 forum is a starting point to re-engage constructively.”
This move aligns with the broader Western recognition of India’s growing economic clout, technological progress, and critical role in ensuring Indo-Pacific stability.
Trudeau-Modi Brief Encounter Hints at Thaw
During the summit, Prime Minister Trudeau and Prime Minister Modi reportedly had a brief but cordial exchange on the sidelines. While no formal bilateral meeting took place, sources confirmed that both leaders agreed on the need to re-establish communication channels and rebuild trust.
The Canadian Prime Minister, under increasing pressure domestically over foreign policy and international credibility, is said to be recalibrating his government’s approach toward India. Observers say Canada cannot afford to isolate itself from India — the world’s fifth-largest economy and a strategic partner in global forums.
Indian Diaspora, Trade, and Education: Common Interests
Despite political tensions, people-to-people ties between India and Canada remain strong. Over 800,000 Indian-origin residents live in Canada, and India consistently ranks among the top countries sending students to Canadian universities.
Trade, too, remains a key driver of cooperation. In 2022-23, bilateral trade crossed $11 billion. Though talks on the Early Progress Trade Agreement (EPTA) were paused due to diplomatic rifts, both nations have economic incentives to resume discussions. Canadian businesses are keen to access India’s large market, while India sees Canada as a valuable partner for technology, energy, and education collaboration.
A Path Forward: From Confrontation to Engagement
Experts believe the G7 platform could serve as a turning point in the India-Canada relationship. While one summit will not erase the damage caused by months of mistrust, it offers a space to restart dialogue.
Former Indian diplomat Rakesh Sood said:
“This is not a reset yet, but a signal. A window of opportunity has opened—now it depends on how both sides use it.”
Going forward, both governments are expected to prioritize quiet diplomacy, focusing on shared interests while managing differences over sensitive issues like extremism and national security.
Conclusion: Realignment in a Shifting World Order
India’s invitation to the G7 summit carries multiple messages—it reaffirms India’s role as a global player, and it also offers a diplomatic pathway for Canada to re-engage with a nation it can’t afford to alienate. As the world navigates complex geopolitical shifts, smart diplomacy and mutual respect will be key to healing rifts and building resilient partnerships. The next few months will show whether this symbolic outreach translates into a meaningful revival of ties.
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