India and Canada have agreed to restore diplomatic services nearly two years after Ottawa accused New Delhi of alleged involvement in the killing of a Sikh separatist leader, which turned into a row straining relations between the two countries.

India and Canada signaled a reset of relations on Tuesday, agreeing to reestablish high commissions in each other’s capitals, after nearly two years of strained ties following Ottawa’s accusations that New Delhi was allegedly involved in the killing of a Sikh separatist on its soil.

Prime Minister Mark Carney said his meeting with Indian Prime Minister Narendra Modi on the sidelines of the G7 summit in Alberta on Tuesday was a "necessary" step toward rebuilding the relationship between the two countries.