Dhaka, June 18 -- India and Canada have agreed to reinstate full diplomatic services, nearly two years after relations soured over allegations by Ottawa that New Delhi was linked to the assassination of a Sikh separatist leader.

The breakthrough was announced following a meeting between Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G7 summit in Kananaskis, Alberta, on Tuesday.

According to a statement from Carney's office, both countries will appoint new high commissioners, aiming to resume normal consular and diplomatic services for their citizens and businesses.

High commissioners, the equivalent of ambassadors between Commonwealth countries, play a crucial role in maintaining bil...