India China relations are being developed once again, Commerce and Industry Minister Piyush Goyal said on Wednesday, while stressing that the outcome of the renewed engagement remains uncertain.
Speaking at the Bloomberg New Economy event, Goyal said India was open to joint ventures with countries worldwide, provided partnerships offered fair terms, continuity and a stable geopolitical environment.
“We are working to develop relations with China once again, but the last word has not yet been scripted on this journey,” Goyal said.
His remarks come as China remains one of India’s largest trading partners, with bilateral trade reaching $127.7 billion in the financial year 2025-26. However, the widening trade deficit and restrictions on investments from countries sharing a land border with India remain important considerations.
India-China trade reaches $127.7 billion
Bilateral trade between India and China increased 7.9 per cent to $127.7 billion in 2025-26, compared with $118.39 billion in the previous financial year.
India’s exports to China rose 36.62 per cent to $19.47 billion from $14.25 billion in 2024-25. Imports from China increased 16 per cent to $131.62 billion during the same period.
The resulting trade deficit widened to $99.19 billion in 2025-26, against $85 billion a year earlier. The imbalance remains a concern for India as it considers the future of its economic engagement with China.
Investment is another area of focus. India has tightened its foreign direct investment policy for countries sharing land borders with it, affecting the framework under which Chinese investments are considered.
Prime Minister Narendra Modi met Chinese President Xi Jinping on September 12, 2026, on the sidelines of the BRICS Summit.
Goyal stresses reliable global partnerships
Addressing geopolitical challenges, Goyal said countries were increasingly recognising the importance of reliable international partners.
“Everybody has recognised the importance of friends, and that’s going to be the most important critical element in the years to come,” he said.
The minister referred to India’s experience during the Covid-19 pandemic, when disruptions to global supply chains exposed vulnerabilities in the country’s access to essential goods.
Goyal said India had faced difficulties obtaining personal protective equipment, Covid kits and vaccines despite placing orders with international suppliers. He also alleged that Western countries had declined to provide Pfizer and Moderna vaccines to India at the time.
India, meanwhile, supplied food grains and vaccines to more than 100 countries during the pandemic, he said.
According to Goyal, these experiences reinforced the need for greater domestic production and supply-chain resilience under the Atmanirbhar Bharat initiative launched by the government.
His remarks linked India’s approach to international partnerships with the need to reduce vulnerabilities while maintaining engagement with global markets.
Singapore and India discuss semiconductor cooperation
At the same event, Singapore Deputy Prime Minister and Minister for Energy, Trade and Industry Gan Kim Yong said the two countries were discussing ways to strengthen India’s semiconductor industry.
The discussions also cover training and skills development for the Indian workforce to support the sector’s growth, he said.
The India-Singapore trade agreement came into force in 2005. Semiconductor cooperation adds to the broader economic engagement between the two countries as India seeks to expand domestic capabilities in strategic industries.
Goyal’s comments on China and international partnerships underline India’s stated approach of remaining open to global investment while seeking fair terms, reliable engagement and greater resilience across critical supply chains.
