India and Canada have expelled their top envoys along with other diplomats as the row intensifies over last year's assassination of a Sikh separatist on Canadian soil.

Canadian Prime Minister Justin Trudeau said his government responded after police began pursuing credible allegations that Indian agents were directly involved in the killing of Hardeep Singh Nijjar.

Canadian police accused Indian agents of involvement in "homicides, extortion and violent acts" and targeting supporters of the pro-Khalistan movement, which seeks a separate homeland for Sikhs in India.

India has rejected the allegations as "preposterous", accusing Trudeau of pandering to Canada’s large Sikh community for political gain.

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