India–China Relations Slowly Returning to Normalcy
Commerce and Industry Minister Piyush Goyal has said that India–China relations are gradually returning to normal. He pointed out that tensions along the frontier, including those arising after the Galwan clash, are easing, creating space for better diplomatic engagement.
Toward a Fair Border Solution
Goyal noted that Prime Minister Narendra Modi and Chinese President Xi Jinping, during their meeting at the SCO Summit, agreed to work toward a “fair, reasonable and mutually acceptable” solution to the long-standing border dispute. Both leaders also expressed interest in strengthening trade and investment ties, acknowledging the impact of their economies on regional and global stability.
Trade, Investment, and FDI Considerations
India currently requires prior government approval for investments from countries sharing land borders, including China, under Press Note 3 (PN3) introduced in April 2020. Goyal highlighted that industry groups have flagged this as a concern. He suggested that as bilateral relations improve, there may be room to review such restrictions to allow smoother economic cooperation.
