India seeks to rebuild ties with China: Goyal

NEW DELHI Union Commerce and Industry Minister Piyush Goyal said on Wednesday that India was working to rebuild relations with China, stressing that future engagement must ensure fairness, continuity and stability. Speaking at the Bloomberg New Economy Forum in New Delhi, he said the process remained ongoing amid geopolitical uncertainties. Goyal said India was open to engaging with countries provided the terms were fair and the geopolitical situation remained stable. His remarks followed a meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping during the BRICS Summit in New Delhi in September. The leaders discussed trade imbalances, supply-chain concerns and predictable market access. Relations between India and China deteriorated following the 2020 Galwan Valley border clash. Although bilateral trade continued, India tightened rules governing Chinese investments. Recent diplomatic engagements indicate renewed efforts to address outstanding concerns and improve economic cooperation. China remained India’s largest source of imports in the 2025-26 financial year, accounting for 17 per cent of total inbound shipments. India recorded a trade deficit of $112 billion with China during the period. However, Indian exports to China rose nearly 37 per cent to $19.47 billion in FY26, while China ranked among India’s top three export destinations between April and August. Goyal also described India-US relations as substantive and consequential, expressing confidence in continued cooperation despite uncertainties surrounding bilateral trade negotiations. The two countries began talks on a trade agreement in March 2025, but discussions remain ongoing beyond their original target of concluding an interim deal in 2025.