India and Canada agreed on Monday on a new roadmap for their relations after talks between their foreign ministers in New Delhi, as both countries seek to mend ties strained over the killing of a Canadian Sikh separatist.

The two countries, both of which are looking to diversify trade away from the United States due to tariff announcements, agreed to collaborate on areas such as critical minerals, trade and agricultural value chains, a joint statement said.

“Reviving this partnership will not only create opportunities for enhanced economic cooperation but also help mitigate vulnerabilities arising from shifting global alliances,” it said.

Almost two years of strained relations

The statement came after Canada’s Foreign Minister Anita Anand met Indian Prime Minister Narendra Modi and her counterpart Subrahmanyam Jaishankar on Monday.

“Both of our governments agree on the importance of elevating the relationship,” Anand said in her opening remarks at the meeting with Jaishankar.

Relations between New Delhi and Ottawa were strained for almost two years after then-prime minister Justin Trudeau accused New Delhi in 2023 of involvement in the killing of a Canadian Sikh separatist Hardeep Singh Nijjar.

India denied Canada’s allegations of involvement in the murder and in turn accused Ottawa of fostering separatist groups on its soil.

In June this year, Trudeau’s successor Mark Carney hosted Modi at the G7 summit in Kananaskis in the Canadian province of Alberta.

India is Canada’s top source of temporary foreign workers and international students, as well as an important market for pulses such as lentils and yellow peas.

Canada is home to an influential Sikh community. Indian leaders say there are some fringe groups there that are still sympathetic to the cause of an independent Sikh state called Khalistan to be carved out of Hindu-majority India.