Speaking at the Baisakhi celebration in Ottawa, Trudeau said that the Komagata Maru's passengers were seeking refuge and better lives, "like millions of immigrants to Canada since".
"With so much to contribute to their new home, they chose Canada. And we failed them utterly," the prime minister said, adding that the passengers were refused entry to Canada due to "discriminatory laws of the time".
He further said that he will "formally apologise" on May 18 in the House of Commons, 102 years after the infamous incident, Toronto Star reported.
The Japanese steamship Komagata Maru, carrying 376 immigrants, mostly Sikhs, from India was denied entry by the Canadian government in May 1914 and was forced to return to India.
Two months later, the ship arrived in Calcutta where British soldiers fired upon the disembarking passengers in which 19 people died.
Former prime minister Stephen Harper did apologise for the incident at a public event in British Columbia in 2008, but the Sikh- Canadians were demanding a formal statement in the Parliament.
Trudeau-led Liberal Party, which has four Sikh ministers in the cabinet, has promised a formal apology during the election campaign last year.
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