India, China in talks to resume border trade through all designated passes: MEA
The Ministry of External Affairs (MEA) on Thursday said that both countries are working to facilitate the resumption of trade through designated points, specifically: Lipulekh Pass in Uttarakhand, Shipki La Pass in Himachal Pradesh and Nathu La Pass in Sikkim.
"This has been part of the India-China conversation in several of our meetings. We have remained engaged with the Chinese side to facilitate the resumption of border trade through all the designated trade points, namely Lipulekh Pass in Uttarakhand, Shipki La Pass in Himachal Pradesh, and Nathula Pass in Sikkim," MEA spokesperson Randhir Jaiswal said at the weekly briefing.
These border trade points were established through bilateral agreements and have been closed since 2020 due to the COVID-19 pandemic and heightened tensions between the two nations. The talks are part of a broader effort to normalise relations between India and China, which have been strained since the deadly border clashes in Galwan Valley in 2020.
India and China are also discussing the resumption of direct flights between the two countries. While the economic value of border trade is relatively small, its resumption would serve as a confidence-building measure to ease border tensions.
The talks coincide with increased trade friction between India and the US, with the US imposing tariffs on Indian goods.
Chinese Foreign Minister Wang Yi is scheduled to visit India on August 18 to hold border talks with National Security Adviser Ajit Doval.
India and China have been working to improve their relationship in recent months, marked by several significant developments. High-level talks between the two countries have resumed, including meetings between Foreign Minister Wang Yi and India's External Affairs Minister S. Jaishankar. Prime Minister Narendra Modi and Chinese President Xi Jinping are expected to meet at the Shanghai Cooperation Organisation (SCO) summit in Tianjin, China, later this month.
China officially welcomed Prime Minister Narendra Modi for the Shanghai Cooperation Organisation (SCO) Summit, which will be held in Tianjin at the end of this month.
Addressing a press briefing in Beijing on Friday, Chinese Foreign Ministry spokesperson Guo Jiakun made this announcement, expressing optimism that the gathering would strengthen regional cooperation.
"China welcomes Prime Minister Modi to China for the SCO Tianjin Summit. We believe that with the concerted effort of all parties, the Tianjin summit will be a gathering of solidarity, friendship and fruitful results, and the SCO will enter a new stage of high-quality development featuring greater solidarity, coordination, dynamism and productiveness," the Chinese Foreign Ministry spokesperson stated.
China will host the SCO Summit in Tianjin from August 31 to September 1 this year, and leaders of over 20 countries, including all member states of the SCO, and heads of 10 international organisations, will attend relevant events as per the Chinese Ministry spokesperson.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Times of Oman
9 hours ago
- Times of Oman
India's current account deficit likely to widen to 1.2% of GDP in FY26: Report
New Delhi: India's current account deficit is expected to nearly double in the Financial Year 2026, rising to 1.2 per cent of GDP from 0.6 per cent in FY25, Union Bank of India said in a report. The estimate carries an upward risk, driven by evolving trade dynamics and global commodity price movements. "We see an upward risk to our estimate for the current account (C/A) deficit for FY26 GDP. We expect higher; almost double versus last year of widening in C/A deficit in FY26 to 1.2 per cent in GDP vis-a-vis an 0.6 per cent in FY25," the report added. The report added that the geopolitical developments, including tariff concerns and potential trade agreements between India and the US or Europe, are expected to play a significant role in shaping trade dynamics. Oil prices remain a key factor, with estimates suggesting that every USD 10 per barrel move in oil prices could impact the annual current account balance by approximately USD 15 billion. Lower oil prices may provide support to the current account balance, given the high sensitivity, the report added. Union Bank of India's report added that despite the expected widening of the deficit, the overall current account position is expected to remain manageable. This is supported by a strong invisible surplus, driven by a robust services trade surplus of USD 188.75 billion in FY25. This compares against an oil import deficit of USD 122.45 billion for the same period. India's merchandise trade deficit widened sharply in Jul'25, reaching USD 27.35 billion in Jul of the current year, vis-a-vis USD 18.78 billion a month ago -- levels last seen in November 2024 -- driven by normalisation in imports post a temporary blip last month, even as the theme of frontloading of exports continued to persist. The pace of import growth, particularly in fossil fuels and capital goods, significantly outpaced export gains, resulting in an imbalance and rising concerns about the sustainability amid shifting global trade dynamics. In terms of sub-segments, trade dynamics in Jul'25 were broadly driven by widening across all three major components. The NONG (Non-Oil, Non-Gold) trade deficit saw the sharpest increase, rising to USD 12.28 billion from USD 7.83 billion in Jun'25. The oil trade deficit also expanded, reaching USD 11.24 billion compared to USD 9.19 billion the previous month. Meanwhile, the gold trade deficit nearly doubled, surging to USD 3.83 billion from USD 1.76 billion in Jun'25. Services trade surplus saw a slight MoM decline, after an upward revision to June's data. The Services trade surplus eased to USD 15.63 billion in Jul'25 vis-a-vis USD 16.21 billion last month, versus an average USD 15.88 billion in Apr-Jul'25, which was USD 13.59 billion in the same period last year.
Times of Oman
9 hours ago
- Times of Oman
India's forex reserves currently at $693.6 billion, inching towards fresh all-time high
Mumbai: India's foreign exchange reserves rose by USD 4.747 billion in the week that ended August 8 to USD 693.618 billion, driven by gains in both foreign currency assets and gold holdings, the Reserve Bank of India (RBI) said in its latest 'Weekly Statistical Supplement'. In the preceding week, India's foreign exchange reserves reported a sharp decline, slipping USD 9.32 billion. Still, the forex kitty is hovering close to its all-time high of USD 704.89 billion touched in September 2024. After the latest monetary policy review meeting, RBI Governor Sanjay Malhotra said the foreign exchange kitty was sufficient to meet 11 months of the country's imports. The latest RBI data showed that India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 583.979 billion. According to RBI data, the gold reserves currently amount to USD 86.160 billion. In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022. In 2024, the reserves rose by a little over USD 20 billion. So far in 2025, the forex kitty has cumulatively jumped by about USD 53 billion, data showed. Foreign exchange reserves, or FX reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US Dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling. The RBI often intervenes by managing liquidity, including selling dollars, to prevent steep Rupee depreciation. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens.
Times of Oman
11 hours ago
- Times of Oman
After energy, India now eyes self-reliance in fertilisers, reducing import dependence
New Delhi : Similar to the country's resolve for energy independence, Prime Minister Narendra Modi emphasised the need for India to achieve self-reliance in the fertilisers sector, while addressing the nation from the ramparts of the Red Fort this Independence Day. The Prime Minister observed that, at present, India remains dependent on imports for a significant portion of its fertiliser requirements. He urged the farming community to adopt judicious and scientific use of fertilisers to protect the health of the soil, cautioning against indiscriminate usage that causes long-term damage to "Mother Earth". Calling upon the youth, the industrial sector, and the private sector, the Prime Minister exhorted the nation to unite in efforts to build ample domestic reserves of fertilisers. He encouraged the discovery and development of innovative methods to meet the country's requirements through indigenous production. "Just like we are dependent on the world for energy, it is the misfortune of the country that we have to depend on the world for fertilisers as well. The farmers of my country can also serve Mother Earth by using fertilisers properly. We are causing a lot of harm to Mother Earth by using it indiscriminately. But at the same time, I want to tell the youth of the country, the industry of the country, the private sector of the country, let us fill the reserves of fertilizers, let us find new ways and prepare our own fertilisers as per the requirement of India, let us not depend on others," PM Modi said from the Red Fort. "The Government has reaffirmed its commitment to work in close coordination with industry stakeholders, research institutions, and state governments to bolster domestic capacity, promote sustainable farming practices, and reduce import dependency," the Ministry of Chemicals and Fertilizers said in a statement. Over the last decade, India's fertiliser industry has seen steady growth. The total fertiliser production has increased from 385.39 Lakh Metric Tonnes (LMT) in 2014-15 to 503.35LMT in 2023-24. Over the past six years, six new urea plants have become operational across the country. India's total annual consumption of fertiliser in 2023-24 was around 601 LMT. About 503 LMT was produced domestically in India, while 177 LMT came through imports.
