Canada is home to nearly 1.7 million people of Indian origin and the developments were being watched anxiously in both countries.
After the meeting of their foreign ministers in Delhi, the two sides announced a series of measures, including starting ministerial-level discussions on bilateral trade and investment.
“Reviving this partnership will not only create opportunities for enhanced economic cooperation but also help mitigate vulnerabilities arising from shifting global alliances,” a joint statement said.
Signs of a thaw have appeared this year since Mark Carney took over as Canadian prime minister.
In June, Carney and Modi held a bilateral meeting on the sidelines of the G7 summit in Canada. Two months later, the countries appointed new high commissioners to each other’s countries.