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The G7 Summit in Kananaskis, deep in the Canadian Rockies, unfolded this week amid global tumult - from an escalating Iran-Israel conflict to intensified Russian missile strikes on Kyiv, to tariff wars. Yet beneath the crisis headlines, the summit also saw critical course corrections in some rocky bilateral relationships. Among other disturbed dyads, India and Canada quietly signalled a thaw in their 21-month-long diplomatic freeze, turning the margins of a multilateral gathering into a moment of bilateral reset.
As always, G7 served a dual purpose: dealing with immediate global crises, addressing the global commons- climate, trade, security -while also functioning as a venue for private reconciliation and realignment, in an era of Trumpian disruption.
Canada's newly minted economist-PM, Mark Carney, hosting a multilateral party just six weeks after winning elections, had reason to be anxious. His predecessor, Justin Trudeau, was humiliated when Trump stormed out of the 2018 G7 summit in Quebec, calling Trudeau 'very dishonest and weak'. This year, fears of a G6 vs Trump redux loomed again.
Canada's newly minted economist-PM, Mark Carney, hosting a multilateral party just six weeks after winning elections, had reason to be anxious.
That fear materialised - but less disruptively. Trump 2.0 arrived at the summit having slapped at least 10% tariffs on all G7 partners. Also, he hadn't completely abandoned the rhetoric of imposing further tariffs on potential '51st state' Canada, or on 'free riding' Europeans. But even though Trump left early for home to play his role as peacemaker and dealmaker-in-chief, this time in the Iran crisis, the White House insisted the president had had a 'great day' in Alberta and achieved much during the trip, leaving Treasury Secretary Scott Bessent behind to dot the i's.
Before bailing, Trump signed a trade deal with UK PM Keir Starmer, exchanging tariff relief for British aerospace and auto industries in return for more US beef and ethanol access to UK markets. Japan and EU, however; returned home empty-handed, with vague promises of 'future engagement. With Canada and Mexico, both US partners within CUSMA, while ties stabilised with bilateral conversations, the tariff threat still loomed.
Trump’s premature exit was to address the Iran crisis, and his G7 peers were happy to delegate the job. While the G7 communique urged ‘de-escalation of hostilities in the Middle East, including a ceasefire in Gaza' - it didn't call for a ceasefire between Israel and Iran, giving space to Trump to do his bit and claim credit.
The absences told a story too. Russia, expelled from G8 in 2014, was not in the room but chose the moment to escalate the conflict in Kyiv, even as Ukraine President Zelenskyy pleaded his case for G7 support. US pushed back on strong criticism of Russia and got G7 to express 'support for President Trump's efforts to achieve a just and lasting peace in Ukraine'. The statement added that the G7 was ‘resolute in exploring all options to maximise pressure on Russia, including financial sanctions' - something US has resisted.
The one major economy absent - China - was the elephant in the room. While G7 leaders talked up supply chain diversification and de-risking, behind closed doors, the leaders would have expressed concern at how the world's second largest economy was challenging the security, prosperity, and values of the advanced western economies.
India, not a G7 member but now a regular invitee, was present in strategic form. Modi, whose bilateral with Trump was cancelled due to the latter's early departure, received a follow-up call from Trump, timed to consult India before Trump engaged Pakistan's army chief. Modi used the call to reaffirm India's unambiguous doctrine: terrorism is war, and third-party mediation - particularly US-led - in South Asia is unwelcome. Trump had a clear Indian message to amplify to Asim Munir.
Modi used the call to reaffirm India's unambiguous doctrine: terrorism is war, and third-party mediation - particularly US-led - in South Asia is unwelcome.
On the sidelines, Modi held conversations with other G7 leaders, continuing India's G20 legacy of speaking for Global South. Coming on the heels of Op Sindoor, Modi got an opportunity to clarify India's new counterterrorism posture.
Among the most significant developments was the first meeting between Modi and Carney, which helped unfreeze bilateral ties. The two nations, embroiled in mutual recriminations since Sept 2023 - including diplomatic expulsions and collapsed political dialogue- used the summit for a purposeful reboot.
Carney, a technocrat with a globalist bent, hadn't visited India during his previous role as vice chairman at Brookfield Asset Management, among largest foreign investors in India. Yet his professional familiarity with global economic landscapes added ballast to the conversation. Despite ongoing pushback from noisy diaspora groups, both sides pressed the reset button.
Readouts spoke of calibrated steps: return of high commissioners to New Delhi and Ottawa, resumption of stalled ministerial dialogue, and renewed cooperation in clean energy, food security, Al, and critical minerals. Most crucially, negotiations on the paused Early Progress Trade Agreement (EPTA) will resume - potentially setting the stage for a full Comprehensive Economic Partnership Agreement (CEPA).
This wasn't a spontaneous reset; it was months in the making. Quiet diplomacy between the foreign ministries, particularly the foreign ministers, backchannel and track-2 efforts paved the way. For New Delhi, the political de-escalation created strategic space to recalibrate. For Ottawa, the arrival of a new PM with no baggage from Khalistan activists allowed a policy rethink.
Both countries are now building institutional shock absorbers- starting with clearer law enforcement protocols insulated from political heat.
This reset aspires to go beyond diplomatic damage control. Both countries are now building institutional shock absorbers- starting with clearer law enforcement protocols insulated from political heat. Modi, after all, had signed a strategic partnership deal with former Canadian PM Stephen Harper a decade ago. The task now is to fulfil that framework's promise - this time through calibrated, interest-based escalation driven by the ‘living bridges’ between peoples and businesses.
G7 in Kananaskis showcased a world teetering between crisis and recalibration. For India and Canada, it offered just the right moment to pivot away from months of recrimination and toward renewed pragmatism.
Modi's strategic message to Trump, and his meeting with Carney, reveal a government that has internalised the logic of a multipolar world: engage where interests align, push back where security or sovereignty is challenged, and anchor diplomacy in national interest rather than global validation.
For New Delhi and Ottawa, the task ahead is not just to restore normalcy - but to reimagine partnership. A reset, if done right, may become a model for how democracies with differences can find common cause again.
This commentary originally appeared in The Times of India.
The views expressed above belong to the author(s). ORF research and analyses now available on Telegram! Click here to access our curated content — blogs, longforms and interviews.
Ajay Bisaria is a Distinguished Fellow at ORF. He is also a strategic consultant and commentator on international affairs. He has had a distinguished diplomatic ...
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