The minister had earlier been asked by Manoj Kotak, a member of the Indian parliament, whether New Delhi would withdraw Beijing’s status as a favored trading partner in light of the ongoing tensions.
"No such proposal is under consideration at this time," Goyal said in a written response to parliament.
The World Trade Organization’s most favored nation principle extends trade concessions for one nation to all countries.
Armed forces personnel from both countries clashed this past June in the Galwan Valley, where the Indian region of Ladakh borders China’s Aksai Chin region, in a confrontation that left both sides with casualties. Further clashes have been reported as recently as 8 September.
The Indian and Chinese foreign ministers held talks on the sidelines of a Shanghai Cooperation Organization summit earlier in September, with both sides agreeing to de-escalate the tensions.