G7 Summit: PM Modi Heads to Canada As Nations Look To Reset Strained Ties

Prime Minister Narendra Modi is set to visit Canada to attend the upcoming G7 Summit, following an invitation extended by Canadian Prime Minister Mark Carney. Amid shifting geopolitical landscape, the visit presents a key opportunity to reset the strained bilateral relationship between the two nations, and build on the trade and people ties between both the countries.

Modi has been invited to attend the G7 Summit as a special guest, despite India not being a member of the grouping. This marks his sixth consecutive participation in the summit, underscoring India's growing global stature. Canadian Prime Minister Mark Carney's decision to invite Modi to the summit in Kananaskis has drawn some domestic backlash, but the Canadian government has defended the move, citing India's crucial role in global supply chains.

Relations between Canada and India have been tense since 2023, following allegations by former Canadian Prime Minister Justin Trudeau that India was connected to the June 18 killing of Hardeep Singh Nijjar, a Sikh separatist leader in Canada. Albeit, India has strongly denied any role in the matter.

India - Canada Economic Relations

Modi and Carney's meeting also comes amid Canada's trade standoff with the United States. Carney is seeking to build new partnerships and reduce Canada's reliance on its southern neighbor by expanding export avenues.

India's exports to Canada in 2023 were worth $7.53 billion and imports from Canada was worth CAD 5.12 billion. Total bilateral trade in goods between India and Canada was worth CAD 12.65 billion in 2023. In 2024, from January to August, total bilateral trade in goods amounted to CAD 8.55 billion, with exports amounting to CAD 5.22 billion and imports amounting to CAD 3.33 billion

The bilateral services trade with Canada stood at CAD 13.49 billion in 2023 with exports worth CAD 3.36 billion and imports worth CAD 10.13 billion. In 2024, from January to June, total bilateral trade in services amounted to CAD 7.85 billion, with exports amounting to CAD 1.78 billion and imports amounting to CAD 6.07 billion.

Canadian pension funds have estimated cumulatively invested over CAD 75 billion in India. More than 600 Canadian companies have a presence in India, and more than 1,000 companies are actively pursuing business in the Indian market.

Indian Students In Canada

With nearly 1.8 million Indo-Canadians and another 1 million non resident Indians, Canada hosts one of the largest Indian Diaspora abroad, which account for more than 3% of its total population. There are also numerous business and Diaspora organisations, supporting enhanced bilateral relations between the two countries.

An estimated 427,000 Indian students are currently studying in Canada. However, the number is beginning to decline following the implementation of Canada's new immigration strategy.

According to recent data from Immigration, Refugees and Citizenship Canada (IRCC), the number of study permits issued to Indian nationals fell by 31 per cent in the first quarter of 2025. Between January and March, only 30,640 permits were granted, a significant drop from 44,295 during the same period in 2024.

Under Prime Minister Carney's revised immigration policy, the government aims to bring immigration down to “sustainable levels” by capping the share of temporary foreign workers and international students to 5 per cent of the population by 2028 — a reduction from the current 7.3 per cent.