Economic ties with Beijing may be easing but with caution, says FM Sitharaman

New Delhi: Finance minister Nirmala Sitharaman on Saturday indicated the possibility of stepping up India-China business engagement, stating that various domestic stakeholders have been calling on the government to facilitate greater access to the Chinese market and investments, and that Beijing has also reached out for the purpose.

"There is something, some kind of a beginning. As to how far it will go that's something we have to wait and see. But it might help the economy. However, a sense of caution would have to be built into it," Sitharaman said. She was speaking at a function held in Delhi for the release of a book in honour of economist Shankar Acharya.

Bilateral trade a priority

India had put in place greater checks on foreign direct investment (FDI) from China and other bordering nations, suspended tourist visas and banned scores of Chinese apps after the Galwan clash in 2020 in Ladakh, initiated by Beijing’s troops. The measures coincided with the onset of Covid-19.

Later, the government extended visas to certain Chinese professionals to push the completion of Indian renewable projects.

This week, India resumed tourist visas to the neighbouring country. In March, Beijing lifted visa curbs on Indian citizens.

External affairs minister S Jaishankar this month visited China for the first time in six years and met President Xi Jinping amid efforts from both sides to reset ties.

Sitharaman also said trade talks with the US and the European Union are going well. “It is bilateral trade which is taking priority over multilateral trade,” she said, referring to the changed global environment.