India announced its decision to withdraw its ambassador and other diplomats from Canada over the investigation into the murder of a Sikh activist.

The decision came after Canada identified Indian ambassador Sanjay Kumar Verma and other diplomats as "persons of interest" in the investigation into last year's killing of Hardeep Singh Nijjar in British Columbia.

New Delhi rejected the charges and summoned Canadian charge d’affaires to the Foreign Ministry in New Delhi.

The ministry rejected what it said "baseless targeting" of the Indian diplomats and officials in Canada which "was completely unacceptable."

"It was underlined that in an atmosphere of extremism and violence, the (Justin) Trudeau government's actions endangered their safety. We have no faith in the current Canadian government's commitment to ensure their security," said the ministry.

Therefore, the ministry said, New Delhi has decided to withdraw its ambassador and other targeted diplomats and officials from Canada.

"It was also conveyed that India reserves the right to take further steps in response to the Trudeau Government’s support for extremism, violence and separatism against India," said the statement.

Earlier, India rejected what it called "preposterous imputations" after Canada sent a diplomatic note to New Delhi suggesting that the Indian ambassador and other diplomats were "persons of interest" in the murder probe.

Tensions between India and Canada have escalated since Nijjar, a vocal proponent of a separate Khalistani state in India’s Punjab region, was fatally shot last year outside a Sikh temple. Canadian Prime Minister Justin Trudeau alleged "credible allegations" linking the Indian government to the killing, a claim India dismissed as "absurd."

The ministry claimed that despite Trudeau’s initial allegations last September, Canada has yet to provide evidence to support its claims.