Prime Minister Narendra Modi’s meeting with Canadian Prime Minister Mark Carney on the sidelines of the recent G-7 summit at Kananaskis in Canada is being hailed as a major “breakthrough” in Canada-India ties. While both sides sent strong signals indicating a diplomatic thaw in relations that froze almost two years ago following the killing of a prominent Canadian Khalistani leader, Hardeep Singh Nijjar, a substantive reset needs more hard work from the two governments.
Following the Carney-Modi meeting, both sides said in separate statements that they would work toward reinstating high commissioners in each other’s capitals, restarting trade talks, and restoring visa processing and other services to citizens. Modi even described the talks as “excellent” and identified trade, energy, space, and critical minerals as areas of potential cooperation.
Carney has been a vocal advocate of stronger ties with India, which featured heavily during his election campaign. His selection of four Indian-origin politicians to key roles in his new government – including Anita Anand as foreign minister – sent an early signal of his commitment to reset diplomatic and trade ties with New Delhi. However, one of the biggest challenges in normalizing relations between India and Canada is the issue of Khalistan, which remains a sore spot. This was evident when Carney dodged questions from journalists on whether he and Modi had discussed the killing of Nijjar.
Carney’s decision to invite Modi to attend the G-7 Summit faced serious domestic opposition, particularly from members of some sections of the Sikh community in Canada. The World Sikh Organization, which describes itself as a national Sikh advocacy organization promoting and protecting the interests of Sikhs in Canada, accused Carney of betraying “core Canadian values” by inviting Modi. Even within his Liberal Party, Member of Parliament Sukh Dhaliwal voiced criticism, citing human rights concerns.
Meanwhile, a report by the Canadian Security Intelligence Service (CSIS) released to the public just a day after the Modi-Carney meeting accused Indian officials and their proxy agents in Canada of engaging in activities “deemed to be foreign interference.” The report described such activities as an attempt by New Delhi to align Ottawa’s position with India on key issues, particularly on Khalistan.
Earlier this year, the government commission that was established in 2023 to investigate foreign interference in the 2019 and 2021 elections, published its final report, which identified India as the “second most active country” engaging in foreign electoral interference in Canada. The report further said: “India will likely seek to promote a pro-India and anti-Khalistan narrative in Canada using cognitive warfare techniques” and that Indian activities – both real and alleged – will remain under close scrutiny in the future.
New Delhi has repeatedly rejected these accusations, while voicing its own security concerns over Ottawa providing political space to extremists advocating violence and secession. Due to the timing of the latest CSIS report, many in New Delhi believe it was yet another attempt by the Canadian government to “appease separatist lobbies,” deliberately ordered to counter domestic criticism following Modi’s participation in the summit.
While Carney has been able to distance his Liberal Party from former Prime Minister Justin Trudeau’s more overtly hostile approach toward India, sections of his minority government remain apprehensive of close ties with New Delhi.
To defend his decision to invite Modi to the G-7, Carney told Parliament that India had agreed to “continue law enforcement dialogue [with Canada]… that recognizes issues of accountability.”
Citing an unnamed Liberal Party source, a Canadian media outlet reported that Carney had placed some “conditions” on the invitation extended to the Indian prime minister. Agreeing to law enforcement dialogue was reportedly among those conditions. Speaking with reporters, Anand, Carney’s foreign minister, also clarified that Modi’s invitation “does not and should not detract” from the importance of the ongoing independent investigation into Nijjar’s killing, while reaffirming how rule of law considerations were “absolutely paramount.” Evidently, despite diplomatic engagement, Ottawa will not backtrack from its demand for accountability in the Nijjar case.
Within the Canadian political system, all government departments contribute to foreign policy. Nearly a decade ago, a former Canadian ambassador cautioned that organizations like CSIS and Canada’s electronic spy agency, Communications Security Establishment Canada (CSEC) “must remain instruments of foreign policy, not arbiters of it.” It is worth recalling how, back in 2013, the Canadian government’s effort to improve relations with Brazil was completely derailed by a leaked report that revealed how CSEC targeted Brazil’s mining ministry. As long as security organizations such as CSIS and Royal Canadian Mounted Police continue to have outsized influence in foreign policy decision making, there will remain limits on the political decision makers ability to fundamentally reset ties with countries.
Nevertheless, a Carney-Modi meeting was urgently needed to arrest the downturn in ties. It is undoubtedly a good starting point, as both countries are reworking their trade ties to bypass Trump’s tariffs. However, the future of the relationship will depend on whether they can discuss security concerns without overwhelming the bilateral relationship, which seems unlikely if they do not overcome historic misunderstandings and rebuild trust.