New Delhi: Defence Minister AK Antony Wednesday categorically denied that the Indian government was "paranoid" about China as his ministerial colleague Jairam Ramesh had said in Beijing.
"There is nothing like that," Antony told reporters here when asked if the Indian security establishment was really "paranoid" and "alarmist" vis-a-vis China as Ramesh, the environment and forests minister, had said in Beijing.
"Our government has a policy to maintain good and friendly relationships with our neighbours. That applies to China also. China is our largest trading partner. That should explain it," the defence minister said on the margins of a conference here.
India, Antony said, has border disputes with China but relations between the two countries "have improved a lot" compared to earlier.
"We even had a joint military exercise with China," the minister added, denying Ramesh`s criticism of India`s policy towards Chinese companies.
The environment minister created a flutter when he said in Beijing Saturday that the policies of the Indian home ministry and security establishment towards Chinese companies were "alarmist and paranoid".
The remarks had Prime Minister Manmohan Singh rebuking Jairam Ramesh and asking him not to comment on the functioning of ministries outside his domain.