India Working to Develop Relations with China 'Once Again', Says Goyal
India is working to develop relations with China “once again”, Union Commerce and Industry Minister Piyush Goyal said, adding that the last word has not been written on this journey yet.
“We are open to all countries around the world as long as we get a fair deal, as long as we are ensured continuity in the engagement, and as long as the geopolitical situation does not deteriorate,” Goyal said at the Bloomberg New Economy Forum in New Delhi. “I think we had some concerns in the past. We are working to develop relations with China once again, but the last word has not been scripted on this journey.”
The minister’s comments come a month after Prime Minister Narendra Modi met Chinese President Xi Jinping on the sidelines of the Brics Summit in New Delhi, where the two leaders held discussions around structural trade imbalance, supply-chain issues and facilitation of meaningful and predictable market access. The Brics Summit in September marked Xi’s first visit to India in seven years.
Goyal had also met his Chinese counterpart on the sidelines of the Brics Summit last month.
India’s engagement with China has revived recently after the fallout between the two nations in 2020 following the Galwan Valley border conflict. While India did not suspend trade with China in the aftermath of the conflict, New Delhi tightened rules for Chinese investments into the country. China remains India’s largest import source, accounting for 17 per cent of the country’s total inbound shipments in financial year 2025-26 (FY26), leading to a trade deficit of $112 billion.
India’s exports to China have also been showing considerable momentum in recent months. Shipments to the East Asian nation jumped nearly 37 per cent to $19.47 billion in FY26. With exports at $9.61 billion, China was among the top three export destinations for India in April-August period.
Further, commenting on India’s strategic ties with the US, Goyal said that the two sides continue to share a close relationship that is “substantive” and “consequential”.
“It is already very good...By and large, I don’t see any problem in any agreement with the US. I think the US and India have a very consequential relationship, and it’s only going to get better irrespective of changes in political thinking--whether in India or the US,” the minister added.
Goyal’s remarks on ties with the US come at a time when there are uncertainties regarding the conclusion of the proposed trade deal after US Trade Representative Jamieson Greer earlier this month said that both sides had identified the sticking points in the negotiations, but a near-term outcome was unlikely.
The US is India’s top export destination, accounting for nearly one-fifth of India’s total annual outbound shipments. India also has a trade surplus of $33.86 billion with the US in FY26.
India and the US began negotiations for a bilateral trade agreement in March last year, with the aim of concluding an interim deal by the fall of 2025. More than a year after that target, with the fall of 2026 underway, talks are still ongoing.
Business Standard