New Delhi, Oct 15:
India is working to rebuild its relations with China, but the future of the engagement remains uncertain, Union Commerce and Industry Minister Piyush Goyal said on Wednesday. He stressed that India was open to working with all countries, including China, provided the arrangements offered fair terms, continuity and a stable geopolitical environment.
Speaking at the Bloomberg New Economy event, Goyal said India was seeking to develop ties with China once again, while noting that the outcome of the process was yet to be determined. His remarks come amid efforts to manage economic engagement with Beijing alongside concerns over trade imbalances, investment restrictions and broader geopolitical developments.
“We are open to all countries around the world as long as we get a fair deal, as long as we ensure a continuity in the engagement, and as long as the geopolitical situation does not deteriorate,” Goyal said. He added that India had faced concerns in its engagement with China in the past.
China remains one of India’s major trading partners. According to the figures cited in the report, bilateral trade rose 7.9 per cent to $127.7 billion in 2025-26, compared with $118.39 billion in 2024-25.
India’s exports to China increased 36.62 per cent, from $14.25 billion to $19.47 billion during the period. However, imports from China rose 16 per cent to $131.62 billion, widening India’s trade deficit to $99.19 billion from $85 billion in the previous financial year.
The growing trade imbalance remains a concern for New Delhi. Investment is another sensitive area, with India maintaining tighter foreign direct investment rules for countries that share a land border with it, including China.
Prime Minister Narendra Modi met Chinese President Xi Jinping on September 12 on the sidelines of the BRICS Summit. The meeting was among the recent high-level engagements between the two countries as they navigate their bilateral relationship.
Speaking about the wider geopolitical environment, Goyal said countries had increasingly recognised the importance of reliable international partnerships. He said India would need dependable relationships as global economic and strategic conditions continued to evolve.
Recalling the Covid-19 pandemic, the minister said disruptions to global supply chains had exposed India’s vulnerability in securing essential goods. Despite India providing food grains and vaccines to more than 100 countries during the pandemic, he said the country had struggled to obtain adequate supplies for its own requirements.
Goyal cited difficulties in procuring personal protective equipment, Covid testing kits and vaccines as examples of the challenges India faced when international supply chains were disrupted. He also alleged that Western countries had refused to provide Pfizer and Moderna vaccines when India sought them.