"We are concerned by the departure of Canadian diplomats from India, in response to the Indian government's demand of Canada to significantly reduce its diplomatic presence in India," State Department spokesperson Matthew Miller said.

Canada has alleged an Indian involvement in the June murder of Canadian citizen and Sikh separatist leader Hardeep Singh Nijjar, whom India called a "terrorist." India denies the allegation.

(Reporting by Costas Pitas; editing by Kanishka Singh)