Kananaskis: In a significant development, Indian Prime Minister Narendra Modi and his Canadian counterpart, Mark Carney, have agreed to take "constructive" steps to restore stability in India-Canada ties.

The two leaders held bilateral talks on the sidelines of the G7 summit in Kananaskis, focusing on resetting bilateral ties that had plummeted to an all-time low following a diplomatic spat over the killing of Khalistani separatist Hardeep Singh Nijjar.

PTI reported that the agreement includes the early return of envoys to each other's capitals, signalling their intent to repair strained relations.

During their meeting, Modi and Carney underscored the importance of restarting senior ministerial and working-level engagements across various domains to "rebuild trust" and "bring momentum" to the relationship.

India and Canada will appoint new high commissioners to facilitate renewed diplomatic engagement.

Modi and Carney also emphasized the importance of restarting stalled negotiations on the Early Progress Trade Agreement (EPTA) and the Comprehensive Economic Partnership Agreement (CEPA).

These agreements aim to strengthen economic ties between the two countries and promote mutual trade and investment. They also discussed various areas of cooperation, including clean energy, digital transformation, artificial intelligence, liquefied natural gas (LNG), food security, critical minerals, higher education, and supply chain resilience.

They also reaffirmed their mutual interest in promoting a free and open Indo-Pacific region.

The two leaders reaffirmed their shared commitment to democratic values, respect for the rule of law, and commitment to upholding the principles of sovereignty and territorial integrity. They agreed to pursue a "constructive and balanced" partnership grounded in mutual respect for concerns and sensitivities, strong people-to-people ties, and growing economic complementarities.