REUTERS/Chris Helgren/File Photo Acquire Licensing RightsWASHINGTON, Oct 20 (Reuters) - The U.S. State Department on Friday urged India not to insist on Canada reducing its diplomatic presence in the country after Ottawa pulled out 41 diplomats this week amid a dispute over the murder of a Sikh separatist leader. "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 Indian involvement in the June murder of Canadian citizen and Sikh separatist leader Hardeep Singh Nijjar, whom India called a "terrorist." But Friday's statement from the U.S. State Department has been the most direct criticism by Washington of New Delhi thus far in this case. Canada withdrew 41 diplomats from India after New Delhi last month asked Ottawa to reduce its diplomatic presence following Canada's allegations over Nijjar's killing.

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Persons: Nanak, Hardeep Singh Nijjar, Chris Helgren, Matthew Miller, Washington, Kanishka Singh, Costas Pitas, Josie Kao Organizations: REUTERS, Rights, U.S . State Department, Ottawa, Department, Analysts, Diplomatic Relations, State Department, Thomson Locations: Surrey, British Columbia, Canada, India, U.S, China, Washington of New Delhi, Vienna, New Delhi, Ottawa