The Prime Ministers of India and Canada reaffirmed the importance of India-Canada ties during a meeting on the sidelines of the G7 Summit. 

• It is being seen as the first among the calibrated steps towards restoration of stable India-Canada bilateral relations after disruptions in ties in 2024.

Other key Outcomes of the meeting

• Both the leaders reaffirmed their shared interest in promoting a free and open Indo-Pacific. 
• They also discussed opportunities for future collaboration in areas like clean energy, education, supply chain resilience etc., and restarting negotiations on trade agreements.

Factors behind the Fallout in India-Canada Relations

• Issue of Khalistani extremism: Canada harbouring Khalistani separatist elements that threaten India’s sovereignty.
  • E.g., An unofficial referendum on forming an independent Sikh state took place in Canada in 2023.
• Diplomatic tensions: In the context of the killing of a Sikh separatist leader in Canada, Canada alleged involvement of Indian diplomats, leading to expelling of diplomats by both sides in October, 2024.
• Security cooperation: Canada has been unresponsive towards India’s multiple extradition requests for terrorists living in Canada.