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.

The announcement was made after Indian Prime Minister Narendra Modi and his Canadian counterpart, Mark Carney, met Tuesday on the sidelines of the Group of 7 summit in Kananaskis, Alberta.

In September 2023, the Canadian government, led then by Justin Trudeau, accused India of orchestrating the fatal shooting of Hardeep Singh Nijjar, an activist who supported carving out a Sikh homeland, Khalistan, from India. Mr. Nijjar, a Canadian citizen, was fatally shot in British Columbia that June.