Relations have been poor for almost two years but there was no sign of tension when prime minister Mark Carney warmly welcomed Indian counterpart Narendra Modi to the Group of Seven summit he is chairing in Alberta.

India and Canada agreed Tuesday to return ambassadors to each other's capitals, turning the page on a bitter spat over an assassination as Canada's new leader welcomed counterpart Narendra Modi.

After nearly two years of heated dispute over New Delhi's alleged involvement in the killing of a Canadian Sikh separatist, Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney met in Ottawa.