Piyush Goyal Rules Out RCEP, Opens Door To Chinese Capital In Desirable Sectors
Union Commerce and Industry Minister Piyush Goyal on Sunday ruled out any possibility of India joining the Regional Comprehensive Economic Partnership (RCEP), while stating that Chinese investments in desirable sectors remain welcome. Speaking at the Financial Express Best Banks Awards 2026 in Mumbai, the minister clarified India's trade and investment stance amid a rising trade deficit with China.India's Stand On Chinese Investments
Goyal remarked that India remains open to Chinese investments, provided they do not threaten economic stability or lead to acquisition of pivotal assets. “We encourage investments from all over the world. We have no problem also on Chinese investments as long as they are in desirable segments, as long as they are not coming in as an opportunistic takeover of an asset which may at some point of time be underpriced,” he said.
The Union Minister emphasized that Press Note 3 of 2020 was not designed to single out but rather served as a broad safeguard applicable to all nations sharing a land border with India. He also noted that a recent amendment, issued through Press Note 2 of 2026, has eased restrictions by exempting beneficial ownership of up to 10 percent from automatic scrutiny. Pakistan, however, remains an exception.
Firm No To RCEP
Goyal was unequivocal on RCEP, stating, “I can place on record that there is absolutely no chance that the Narendra Modi government is going to sign RCEP.”The minister claimed that joining RCEP, the 15-member Asia-Pacific free trade agreement that India walked away from in 2019, could have hollowed out the Indian manufacturing sector due to the surge in imports.
Goyal also revealed that out of 200 stakeholders consulted before India's final decision, only three supported joining the trade bloc, reflecting widespread industry opposition. Industry players, farmers and various other groups had voiced strong concerns that RCEP membership would put domestic producers at a disadvantage and deepen existing trade imbalances.
The Union Minister’s remarks signal a firm and consistent trade policy position. While India is willing to engage with China on investment terms it can control, multilateral arrangements like RCEP that could expose domestic industries to unfair competition remain firmly off the table.
Pages:
[1]