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.

India and Canada signaled a significant diplomatic thaw nearly two years after the killing of a prominent Canadian Sikh cleric set off a deep rift between the two countries that culminated in each expelling the other's senior diplomats.