Overview
- External Affairs Minister S. Jaishankar said Tuesday at the Bloomberg New Economy Forum that peace and tranquillity along the LAC must hold if India-China relations are to return to normal.
- Jaishankar and Commerce Minister Piyush Goyal made clear that India will treat boundary talks separately from business talks and will consider greater economic engagement without demanding a full border settlement.
- India flagged a steep trade imbalance with China, noting bilateral trade of about USD 127.7 billion in 2025–26 and a widened Indian deficit of roughly USD 99.19 billion.
- Both sides have rolled out confidence-building measures since the more-than-four-year standoff ended in late 2024, and Prime Minister Narendra Modi met Xi Jinping on September 12, 2026, as part of the cautious diplomatic thaw.
- Outcomes remain uncertain because New Delhi will link deeper engagement to continued border calm while keeping tighter FDI rules for neighbours and pressing China for fairer market access, which could affect investment and supply chains.