We are working to develop relations with China once again: Piyush Goyal

Commerce and Industry Minister Piyush Goyal stated on Wednesday that India is working towards restoring relations with China, though the conclusion of this process remains unwritten. Goyal emphasized that India remains open to joint ventures with any nation, provided they receive a fair deal, and as long as geopolitical tensions do not escalate. Speaking at the Bloomberg New Economy event, Goyal noted that the last word on India-China relations has not been determined.

China is India's second-largest trading partner, with bilateral trade increasing by 7.9% to $127.7 billion in 2025-26 from $118.39 billion in 2024-25. India's exports to China grew by 36.62% to $19.47 billion, while imports rose by 16% to $131.62 billion. However, the trade deficit widened to $99.19 billion in the last fiscal from $85 billion in 2024-25, raising concerns.

India has tightened its Foreign Direct Investment (FDI) policy for countries sharing borders with it, presenting a challenge in this area. Prime Minister Narendra Modi met with Chinese President Xi Jinping on September 12, 2026, during the BRICS Summit.

Goyal highlighted the importance of allies in the current geopolitical climate, recalling India's focus on self-sufficiency during the Covid-19 pandemic when many countries failed to deliver essential supplies. He recounted instances where the West refused to provide vaccines or necessary equipment, leading to Atmanirbhar Bharat (self-reliant India) as a response.

Additionally, Singapore's Deputy Prime Minister and Minister for Energy, Trade, and Industry, Gan Kim Yong, mentioned ongoing discussions to bolster India's semiconductor industry and workforce training.