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India and Canada have agreed to restore diplomatic services. Ties between the two countries have been strained for the past two years over the issue of Khalistan. 

The development took place as Prime Minister Narendra Modi held his first bilateral meeting with Canada's new Prime Minister Mark Carney on the sidelines of the G7 Summit. 

"We will move to appoint High Commissioners again," Carney said after the meeting, addressing the media. 

He termed the meeting "foundational" and viewed it as a "necessary first step". "An exchange of views-frank, open exchange of views around law enforcement and transnational repression, as two examples-an agreement to provide the necessary foundations to begin rebuilding a relationship based on mutual respect, sovereignty, and trust," he added.

#WATCH | Kananaskis: On his meeting with PM Modi, Canadian PM Mark Carney says, "...We will move to appoint High Commissioners again..."

"I think today's meeting was important, but I would describe it as foundational, a necessary first step: an exchange of views-frank, open… pic.twitter.com/ONm0JvrwdQ

— ANI (@ANI) June 18, 2025

Modi-Carney Meeting 

"Prime Minister Carney and Prime Minister Modi reaffirmed the importance of Canada-India ties, based upon mutual respect, the rule of law, and a commitment to the principle of sovereignty and territorial integrity. The leaders agreed to designate new high commissioners, with a view to returning to regular services to citizens and businesses in both countries," the Canadian readout of the meeting stated. 

The two leaders discussed strong and historic people-to-people ties, partnerships in the Indo-Pacific, and significant commercial links between Canada and India - including partnerships in economic growth, supply chains, and energy transformation.

"Prime Minister Carney raised priorities on the G7 agenda, including transnational crime and repression, security, and the rules-based order.
The leaders also discussed opportunities to deepen engagement in areas such as technology, the digital transition, food security, and critical minerals," the readout added.