The upcoming G7 Summit in Canada marks the 51st summit of the grouping. The G7 Leaders’ Summit will be held in Kananaskis, Alberta, spanning two days from June 15 to June 17. A range of issues have been put forth by the host of Summit, spanning from international peace and security to global economic stability and growth to digital transition.
The summit provides a platform for major IMF advanced economies to deliberate on issues pertaining to global economic challenges, international cooperation and promote democratic values. Beyond the traditional objectives of the G7 and the specific focus issues for Canada, this year’s Summit also proves to be a litmus test for the India-Canada bilateral relationship.
India has been invited to four G7 Summits so far as a guest nation, reflecting the country’s growing influence on global economic and geopolitical issues. Following this tradition, India has been invited for the 2025 G7 Summit in Alberta as well, marking a significant turn in the course of India-Canada relations.
The significant downturn in the bilateral relations between the two necessitates one to analyse this recent development. Thus, it is essential to trace back in time when relations between the two had ebbed away to a new low.
The Khalistan Question
India and Canada saw a sharp deterioration in their bilateral relations in September 2023, following former Prime Minister Justin Trudeau linking the death of Khalistani activist Hardeep Singh Nijjar to Indian state agents. The crisis deepened further in October 2024 when Canada accused Indian diplomats of being complicit and involved in criminal activities, alleging involvement in intimidation, extortion and murder. New Delhi was rather quick in rejecting these claims and labelling Canada a ‘safe haven’ for anti-India activities.
This diplomatic spat was further exacerbated by allegation of ‘foreign interference’ by India’s agents in the Canadian electoral process. The ensuing diplomatic row between the two saw both countries expelling top diplomats, leading to bilateral free trade negotiations being frozen, severely impacting higher education and public perceptions on both sides of the relationship.
India views the presence of pro-Khalistani elements in Canada as a direct threat to its sovereignty, leading to frequent diplomatic confrontations. Earlier in 2024, India had summoned Canada’s charge d’ affairs in New Delhi. The MEA’s summons to Steewart Wheeler followed the government expressing its displeasure of Canada investigating the Indian ambassador and other diplomats, labelling them as ‘persons of interest’ over the killing of Hardeep Singh Nijjar.
India’s Ministry of External Affairs said India received a “diplomatic communication from Canada suggesting that the Indian High Commissioner and other diplomats are ‘persons of interest’ in a matter related to an investigation in that country”. Further, the government called the allegations ‘preposterous’ and a ‘strategy of smearing India for political gains’.
Canada had also reportedly named the Indian High Commissioner Sanjay Kumar Verma as a ‘person of interest’ in its investigation. India further accused Canada of maligning its officials without evidence and using ‘preposterous’ claims to justify its failure to curb Khalistani extremism on its soil.
India’s High Commissioner to Canada, Ambassador Sanjay Kumar Verma played a key role in addressing certain concerns, more importantly, conveying India’s position on the Khalistan issue, urging the Canadian administration to act decisively against individuals and groups promoting and aiding separatist agendas. He also emphasised the need for Canada to balance its domestic commitments to free speech with its international responsibilities to mitigate extremism. Ambassador Verma’s interventions were indicative of the growing frustration in India’s diplomatic circles.
The Khalistan issue has slowed the progress of trade and economic agreements. For instance, negotiations for the Comprehensive Economic Partnership Agreement (CEPA) have been halted and subsequently delayed, reflective of political tensions overshadowing economic pragmatism. Other aspects of the relationship, such as clean energy, technology and education faced significant hurdles due to these political tensions.
Speaking of this issue strategically, India’s displeasure with Ottawa’s handling of the Khalistan issue has influenced cooperation in multilateral forums, with the bilateral differences diluting the possibility to effectively collaborate on global issues.
With the relationship having undergone a significant turmoil recently, it becomes increasingly necessary to analyse Canada’s move of inviting India for the 51st G7 Summit in Alberta. In simple terms, the G7 invitation signals Ottawa’s willingness to move forward in this relationship while addressing certain key concerns through renewed dialogue.
India in Alberta: Moving Forward?
Canadian Prime Minister Mark Carney has positioned the invitation as part of a strategic and economic recalibration. He placed emphasis on the importance of engaging the world’s fourth largest economy, India. Several factors guide this realignment, with India being a key player in global supply chains being one of the most crucial factors. Other factors include India’s role in shaping the future of energy, technology and critical minerals.
India’s invitation to the Summit in Canada reflects India’s rising stature in global geopolitics. As one of the largest democracies and the fourth largest economy. India’s representation also underscores the interests of the Global South. Its participation in the G7 discussions helps bring perspectives from developing nations to the table, addressing concerns that were often overlooked in Western-led forums. For the host, i.e Canada, India’s participation signifies an acknowledgement of its indispensability in addressing global challenges like climate change, security and trade.
Another crucial factor is China. The Indo-Pacific is central to the G7’s agenda. Despite the spat, Canada values India’s role as a counterbalance in the region. India’s active involvement in the G7 aligns with Ottawa’s broader strategy to promote stability and inclusive growth in the Indo-Pacific.
Economics too has a role to play in this dynamic. India and Canada share an estimated bilateral trade worth CAD 13.32 billion as of 2024. Despite political disagreements and diplomatic downturns, economic considerations remain vital for nations. It is in this light that Canada’s invitation to India should be seen, as it serves as an opportunity to strengthen trade relations, in emerging sectors like clean energy, technology and education.
The administration in Ottawa takes cognizance of the necessity to diversify economic partnerships beyond traditional allies. By engaging New Delhi, Canada aims to tap into the potential and promises of one of the fastest growing markets in the world, to ensure long term economic benefits.
Indian and Canadian interests also intersect at certain global issues like climate change, energy security and food security, often transcending bilateral tensions. India’s leadership in initiatives like the International Solar Alliance are reflective of its value as a partner in sustainable development.
Canada’s decision also demonstrates that cooperation to mitigate global challenges overrides bilateral disagreements, underscoring a shared commitment to addressing critical issues through dialogue and partnership.
Conclusion
The invitation to India by Ottawa for the G7 Summit reflects a pragmatic approach, more so in the current state of relations between the two. India’s pivotal role in addressing global challenges is acknowledged. It also ensures that bilateral differences do not hinder progress on certain shared objectives. Additionally, recent remarks by Mark Carney may also be indicative of a willingness on the Canadian part to work in a more effective way to mitigate India’s concerns and ensure that Indian interests are respected, for the overall development of the relationship. Canada realises the fact that ignoring India any further could prove to be detrimental to its economy in the future.
However, Indian diplomacy must take lessons from its relationship with Canada and be cautious in devising a complete reset. India must ensure that the new administration takes decisive action such as arrests, clampdowns and intelligence cooperation against anti-India Khalistani operatives on Canadian soil.
Sources:
- Express Web Desk. (2025, June 7). Canadian PM reveals why he invited PM Modi to G7 meet. The Indian Express. https://indianexpress.com/article/world/canadian-pm-revealed-why-he-invited-pm-modi-to-g7-meet-10053580/
- Carney, M. (2025, June 6). Canada’s PM faces backlash for inviting India’s Narendra Modi for G7 summit. The Guardian. https://www.theguardian.com/world/2025/jun/06/canada-prime-minister-g7-invitation-modi
- Government of Canada. (2025, June 9). Canada’s 2025 G7 presidency. Government of Canada. Retrieved June 10, 2025, from https://g7.canada.ca/en
- Nadjibulla, V., & Dutta Choudhury, S. (2025, April 2). Resetting Canada–India relations: Navigating security, trade, and strategic opportunities in a shifting global order [Dispatch]. Asia Pacific Foundation of Canada. https://www.asiapacific.ca/publication/resetting-canada-india-relations-navigating-security-trade
- ANI Podcast with Smita Prakash. (2024, October 25). EP‑231 | Trudeau’s Pro‑Khalistan Agenda Exposed | India‑Canada Tensions | Sanjay Kumar Verma [Video]. YouTube. https://www.youtube.com/watch?v=Q8-zTWQQIZo
- Singh, R. (2022). Economic Partnerships in the Indo-Pacific: Canada and India. Journal of International Relations.
7 Kumar, S. (2023). “India’s Strategic Role in Global Diplomacy.” The Diplomat. - Gill, A. (2023). “India’s Climate Leadership on the Global Stage.” South Asia Journal.
- The Times of India. (2025, June 10). India a must at G7 table: Mark Carney on inviting PM Modi. https://timesofindia.indiatimes.com/india/india-a-must-at-g7-table-mark-carney-on-inviting-pm-modi/articleshow/121702117.cms
- News18. (2024, June 10). Canada has invited PM Modi for G7 Summit, but India must remain cautiously optimistic: Homework WS KL. https://www.news18.com/india/canada-has-invited-pm-modi-for-g7-summit-but-india-must-remain-cautiously-optimistic-homework-ws-kl-9374947.html
