Daijiworld Media Network – Mumbai
Mumbai, Jun 8: Union Commerce and Industry Minister Piyush Goyal on Sunday asserted that there is “absolutely no chance” of the Narendra Modi government joining the Regional Comprehensive Economic Partnership (RCEP), while maintaining that India remains open to investments from China and other neighbouring countries in sectors considered beneficial to the country.
Speaking at the Financial Express Best Banks Awards 2026 in Mumbai, Goyal defended India's investment screening framework and criticised the previous Congress-led government for taking India into RCEP negotiations.
Responding to concerns over the rising trade deficit with China, Goyal said India has no objection to Chinese investments provided they are in desirable sectors and do not pose risks to the economy or result in opportunistic takeovers of strategic assets.
“We encourage investments from all over the world. We have no problem with Chinese investments as long as they are in desirable segments and are not aimed at opportunistic acquisition of underpriced assets,” he said.
The minister clarified that restrictions introduced through Press Note 3 of 2020 were not directed solely at China but applied to all countries sharing land borders with India. According to him, the policy was introduced to protect the domestic economy from opportunistic takeovers during periods of economic stress.
Goyal also referred to amendments introduced through Press Note 2 of 2026, stating that beneficial ownership of up to 10 per cent would no longer automatically come under scrutiny. He reiterated that India is not opposed to investments from neighbouring countries, except Pakistan.
On the issue of India's growing trade deficit with China, the minister said policymakers must first examine the nature of imports before drawing conclusions.
Taking a firm stand on RCEP, the 15-nation Asia-Pacific trade bloc that India opted out of in 2019, Goyal said the Modi government would not reconsider its position.
“There is absolutely no chance that the Narendra Modi government is going to sign RCEP,” he said, adding that he does not foresee India joining the grouping for many years.
Questioning India's participation in the negotiations, Goyal argued that the country already had free trade agreements with most RCEP members and therefore had little reason to become part of a larger arrangement that included China.
He said India already had FTAs with the 10 ASEAN nations and was at an advanced stage of negotiations with Australia when discussions on RCEP were underway.
The minister also criticised the Congress party, accusing it of pursuing an “irresponsible” trade strategy involving China. He claimed that joining RCEP could have severely affected India's manufacturing sector by exposing domestic industries to a surge of imports.
“The outcome could have been devastating for Indian manufacturing. There would have been no Bajaj Auto. There would have been no manufacturing in India,” he said.
Recalling the period leading up to India's decision to stay out of RCEP, Goyal said he had only five months after assuming office in June 2019 to study the issue before the bloc's final meeting in November that year.
He said the government conducted around 200 stakeholder consultations across the country, and only three participants supported joining the trade pact.
According to him, Indian industry, farmers and several other stakeholders feared that membership would expose domestic producers to unfair competition and widen trade imbalances.
“I wish and pray that nobody looks at entering RCEP, particularly given that we get a raw deal even from the RCEP,” he said.
Goyal made the remarks while addressing the Financial Express Best Banks Awards 2026, held in Mumbai on June 7, where leading banks, non-banking financial companies, small finance banks and fintech firms were recognised for excellence in performance and governance.