India, June 18 -- Prime Minister Narendra Modi and his Canadian counterpart Mark Carney have agreed on a range of "calibrated and constructive" steps to restore stability to bilateral ties, including the posting of envoys to each other's capitals, after a prolonged diplomatic spat over the killing of a Khalistani separatist.

Modi described India's relations with Canada as "very important", while Carney pointed to the importance of bilateral ties based on "mutual respect and the rule of law", and said the two sides discussed opportunities to partner for economic growth.

The Indian side had billed the meeting of the two leaders on the margins of the G7 Summit in Canada - the first contact between the top leadership of the two sides in mor...