New Delhi:

External Affairs Minister S Jaishankar on Friday said that in many ways China is a “challenging neighbour” for India and that he has always seen lessons from that country’s growth.

Speaking at the India Economic Conclave, he also described as “sensible” the recent agreement between the directors-general of military operations (DGMO) of India and Pakistan to adhere to the 2003 ceasefire along the Line of Control (LoC) in Jammu and Kashmir.

“We always wanted normal neighbourly relations with Pakistan. Everybody knows what that means. If there are trends in that direction, of course, I would welcome it,” he said.

Asked during the interaction on whether India will engage with the Taliban, Mr Jaishankar noted that it would like to clearly see a sovereign democratic and inclusive Afghanistan that takes into account the interests of its minorities.

“There is something called the peace and reconciliation process and everybody else is saying that the Taliban is reaching out and changing etc. Let us wait and watch.”

To a question whether China has become indispensable to economic calculations, Mr Jaishankar said the Chinese have a salience in the global economy.

“I do not think anybody can deny it. I think one needs to appreciate what they have done to their national capabilities in the last 40-odd years,” he said.

He said the Chinese in many ways, starting with then US President Richard Nixon and former US Secretary of State Henry A Kissinger, had “outthought” the West, adding “not just them but their successive generations.”

“And not just America, the West as a whole which explains why they are where they are today,” he added.

At the same time, Mr Jaishankar noted that it would be difficult to say what will happen in the future as there are a lot of “contradictions and frictions” out there today.

“But when it comes to us, we need to ask ourselves: so we have this neighbour who has done spectacularly well. So.do we just stand there with our hands in our pocket and marvel at what they have done or do we say this is an inspiration, I need to also strengthen my competitiveness and my capabilities and so on,” he said.

Mr Jaishankar clarified that his comments are not a political statement and that it is an international relation or even a domestic governance observation.

“We were about the same size of economy when Rajiv Gandhi went to China in 1988 and look at the difference today. So for me I have always seen lessons in China’s growth,” he said.

“To me, in many ways, yes China is a neighbour and it is in many ways a challenging neighbour,” he added.

Following a series of military and diplomatic talks, India and China completed withdrawal of troops and weapons from the North and South banks of Pangong lake in line with an agreement on disengagement last month. The two countries were locked in a tense border standoff since May 5 last in eastern Ladakh.

Asked whether the agreement between the DGMOs of India and Pakistan and the talks between Indus commissioners of the two sides were a sign of thaw in ties, Jaishankar said, “I think the agreements between the DGMOs is a sensible agreement because I don’t think Pakistan either did themselves or us good by encouraging or facilitating infiltrators and terrorists across the Line of Control and the IB (international border).