India-China ties on path to normalcy: Goyal

India and China are gradually moving towards normalising bilateral relations, Union Commerce and Industry Minister Piyush Goyal said on Tuesday. His remarks follow a “productive” meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping on the sidelines of the Shanghai Cooperation Organisation (SCO) summit in Tianjin.

Speaking to mediapersons at CII’s 20th Global Sustainability Summit in New Delhi, Goyal said the resolution of border issues is paving the way for a return to normalcy in ties. He acknowledged that the 2020 Galwan clash had caused a temporary setback.

“This was an SCO summit, where all member countries participated. We had a problem in Galwan, which caused a blip in the relationship. As the border issue got resolved, I think the situation is getting back to normal. It’s a very natural consequence,” he said, when asked whether warming ties could lead to relaxations in Press Note 3 (PN3).

The PN3 policy, introduced in April 2020, requires government approval for foreign direct investment from countries sharing land borders with India, including China.

The Modi-Xi meeting underscored a mutual interest in strengthening economic cooperation. Both leaders acknowledged that India and China — two of the world’s largest economies — can play a crucial role in stabilising global trade through enhanced collaboration.

During their discussions, Modi and Xi reiterated their commitment to finding a “fair, reasonable and mutually acceptable” solution to the longstanding border dispute. They also stressed the need to expand trade and investment ties, recognising the importance of both economies in supporting global growth.