More Chinese investment good for larger relationship, says India’s envoy to China

Chinese Ambassador Vikram Doraiswami said on Saturday, July 4, 2026 that more investment from China into India would be good for both the economics of the relationship and the broader bilateral relations.

The Indian envoy also took a step towards India exporting more to China, especially in areas such as pharmaceuticals, where India is globally competitive.

“Obviously we want to be able to export more to China. There’s nothing unreasonable in proposing that,” he said, speaking on a panel on protectionism and global economic governance at the World Peace Forum, an annual foreign policy forum in Beijing.

“Particularly in areas where we believe we have a competitive advantage, such as pharmaceuticals. For example, we are one of the world’s largest exporters of pharmaceuticals to developed markets. We hope that our Chinese partners will work with us to ensure that Indian manufacturing companies producing high-quality generic drugs, the same products exported to the US and elsewhere, can be exported to the Chinese market. We think there is a balance of advantages for both countries, including value for China and, of course, value for the relationship.”

India’s trade with China has expanded despite the political freeze in relations since 2020. Both sides began the process of normalizing relations after Prime Minister Narendra Modi’s meeting with Chinese President Xi Jinping in October 2024 following the standoff at the Line of Actual Control (LAC).

But trade remains lopsided due to a widening deficit. According to Ministry of Commerce data, China became India’s largest trading partner in 2025-26; Bilateral trade increased to 151.1 billion dollars and the deficit increased to 112.16 billion dollars. Mr. Doraiswami noted that trade was increasing “irrespective of the ups and downs in broader political relations.” India’s exports to China have also increased recently. “That means there are market opportunities there. We need to find ways to facilitate that,” he said.

India continues to import large quantities of electrical machinery and finished goods, as well as a number of intermediate goods, from China. “How do we find ways for India and China to connect with an expanding basket of goods that both sides can provide to each other, but also a sense that reasonable mechanisms to protect consumers can be put in place to enable India to export more goods to China than it can export to other parts of the world?” he said.

“So if exports consist of goods that we can add value to, it’s easier to think that trade won’t be exactly 50-50 balanced, but one side will export more. If it’s pure consumer goods, it becomes a little harder to sell as a reasonable mechanism for the deficit.”

Regarding investments from China, he said, “the policy environment has been specifically changed in the last few months to facilitate more Chinese investment.” In March, India eased restrictions on investments from China in early 2020 under Press Note 3.

Mr Doraiswami said India was “keen to not only help make the investment happen, but also to listen to their concerns and find ways we can offer further support”. [Chinese] There are businesses coming to India.” “I think this is good for the economics of the relationship. “This is also a good thing for larger inter-country relations,” he said.

“As relations move towards normalization, the Indian government has taken steps to restore opportunities for Chinese businesses to invest in the Indian market,” he said. “We want this connection to be better because today, not only in India but around the world, China’s inputs into the production process such as chemicals, new renewable energy products, etc. are critical for international production.

This is linked to the trading post. As long as we can step into the trade basket, create added value and [enable] “In addition to producing for our own market, it will be an easier sale in India if we also produce for export markets with the countries with which we currently have trade arrangements.”