India's ambassador to China, Vikram Doraiswami, emphasizes expanding pharmaceutical exports and attracting Chinese investments to strengthen bilateral relations.
New Delhi, India Jul 4, 2026 ALN: Beijing: China opening its market to Indian products, especially pharmaceuticals, coupled with investments in New Delhi, will be "good for the larger country-to-country relationship", envoy Vikram Doraiswami said on Saturday.
"Obviously, we would like to be able to export more to China. There is nothing unreasonable about suggesting that, particularly in areas where we believe we have a competitive advantage such as pharmaceuticals," the Indian ambassador stated during a panel discussion on Protectionism and Global Governance at the World Peace Forum organized by China's Tsinghua University.
Doraiswami highlighted that India is one of the world's biggest exporters of pharmaceuticals to advanced markets, addressing questions about India-China trade and investment ties. The ambassador's remarks come at a time when the relationship between India and China is under scrutiny, particularly in light of the ongoing geopolitical tensions between the two nations.
Trade and commerce constitute a crucial component of India-China relations. In the fiscal year 2025-26, China surpassed the US to become India's largest trading partner, with bilateral trade reaching USD 151.1 billion. This milestone reflects the growing interdependence of the two nations, which have historically had a complex relationship characterized by both cooperation and competition.
However, the trade deficit with Beijing widened to an all-time high of USD 112.16 billion, according to data from the Indian Ministry of Commerce. This trade imbalance has raised concerns in India, prompting calls for a more equitable trading relationship. India's exports to China rose by 36.66 percent to USD 19.47 billion, while imports increased by 16 percent to USD 131.63 billion. The significant increase in exports is a positive sign, yet it is overshadowed by the growing import figures that contribute to the trade deficit.
The trade deficit swelled to an all-time high of USD 112.6 billion in 2025-26, compared to USD 99.2 billion in 2024-25. India has long been advocating for China to open its IT, pharmaceutical, and agriculture sectors, which are areas of strength for India. The Indian government believes that increasing exports in these sectors could help rectify the trade imbalance and foster a more balanced partnership.
Doraiswami recently held discussions with Wang Liping, Director General of the Department of Asian Affairs at the Ministry of Commerce of China, to explore initiatives aimed at enhancing trade ties. These discussions are part of a broader effort to strengthen cooperation between the two nations, which have historically faced challenges in this area due to political and strategic tensions.
The envoy expressed hope that Chinese partners will collaborate with India to ensure that firms producing high-quality generic medicines, which are currently exported to the US and other markets, can also penetrate the Chinese market. This potential collaboration could open new avenues for Indian pharmaceutical companies, which have been seeking to expand their footprint in international markets, particularly in Asia.
"We think there is a balance of advantage for both countries, including value for China and, of course, value for the relationship," he remarked.
In response to inquiries about balancing exports and investments, Doraiswami stated that Chinese investments are also "good for the larger country-to-country relationship". He noted the recent easing of restrictions by the Indian government on Chinese investments, indicating that the relationship between the two nations is moving towards "normalization". This normalization is significant given the past couple of years, during which tensions escalated over border disputes and strategic rivalries.
"India has taken steps to re-establish opportunities for Chinese businesses to invest in the Indian market," he added, emphasizing that the policy environment has been specifically altered in recent months to facilitate greater Chinese investment. This shift in policy reflects India's recognition of the importance of foreign direct investment (FDI) in driving growth, especially in sectors that are crucial for India's development.
Doraiswami extended an invitation to Chinese businesses to invest in India, assuring that the Indian embassy is ready to assist in making investments happen while also addressing their concerns. This proactive approach by the Indian government aims to create a more inviting atmosphere for foreign investors, particularly from China, which has been a major source of FDI in the region.
"That I think is good for the state of the relationship. It is also good for the larger country-to-country relationship," he concluded.
The implications of Doraiswami's statements are significant. By advocating for increased pharmaceutical exports and encouraging Chinese investments, India is positioning itself as a key player in the global pharmaceutical supply chain, particularly in the wake of the COVID-19 pandemic, which has underscored the importance of robust healthcare systems and supply chains. Furthermore, strengthening ties with China could help mitigate some of the geopolitical tensions that have historically characterized the relationship.
As both nations navigate their complex relationship, the focus on trade and investment could serve as a foundation for improved diplomatic relations. However, challenges remain, including addressing the trade imbalance and ensuring that investments are mutually beneficial. The success of these initiatives will depend on the willingness of both sides to engage in constructive dialogue and address concerns that have historically hindered cooperation.
In conclusion, the ongoing discussions regarding pharmaceutical exports and Chinese investments highlight the potential for enhanced collaboration between India and China. As both nations work to deepen their ties, the outcomes of these efforts could have far-reaching implications for regional stability and growth in Asia.
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