The speculations come as no formal communication has been exchanged between New Delhi and Ottawa regarding Modi's participation.
According to reports, Canada has not sent a formal invitation to PM Modi seeking his participation.
In any case, PM Modi is likely to skip the summit given the current state of ties between the two nations, said reports.
If PM Modi indeed skips the event, this will be the first time he will not attend the G7 summit in six years.
Relationship between India and Canada touched new low points during the tenure of former PM Justin Trudeau following the death of Khalistani leader Hardeep Singh Nijjar.
A diplomatic row between the two countries began after Trudeau alleged India's role in the killing of the Khalistani leader.
In June 2023, Nijjar, who was a Canadian citizen, was gunned down close to the Vancouver gurdwara.
Trudeau continuously alleged 'agents' of the Indian government were behind Nijjar's killing.
The Indian government continuously rejected all allegations levelled against it.
India and Canada expelled and recalled senior diplomats with ties reaching their lowest points at the end of Trudeau's tenure.
In January 2025, a Canadian commission, probing into alleged foreign interference in its electoral processes and democratic institutions, in its report stated that "no definitive link" with a "foreign state" in connection with the killing of Khalistani terrorist Hardeep Singh Nijjar was "proven".
The Indian government's position was vindicated by the report.
Canadian politics soon witnessed a massive change with Mark Carney taking charge of the Liberal Party and becoming the Prime Minister after Trudeau stepped down from the post, ending his 10-year rule.