Coordinating with Bhutan on Dokalam issue: India

India on Friday said it continues to engage with China diplomatically and has been coordinating with Bhutan to find a mutually-acceptable solution to the Dokalam standoff.

"We continue to engage with China through diplomatic channels to find a mutually acceptable solution," external affairs ministry spokesperson Gopal Baglay said.

Asked about China's claim of India reducing its troops from 400 to 40 in Dokalam, he said refused to give a direct reply calling it an operational matter.

Our objective is to achieve peace and tranquillity and it will be achieved through diplomacy, Baglay said.

He also said that India has been in continuous coordination and consultation with Bhutan on the Dokalam issue.

Meanwhile, China has said that it has shown "utmost goodwill" over the prolonged military standoff with India in the Sikkim sector but warned that its "restraint" has a "bottom line".

The reaction from the Chinese defence ministry late Thursday night came a day after the Indian External Affairs Ministry in a statement said that the peace and tranquillity of the India-China boundary constitute the important prerequisite for the smooth development of bilateral relations.

External Affairs Minister Sushma Swaraj last month made clear India's position on the over-a-month-long standoff in the Doklam area, saying both sides should first pull back their troops for any talks to take place, favouring a peaceful resolution.

The standoff began on June 16 after Chinese troops began constructing a road near the trijunction with Bhutan, which India says was a unilateral action by Beijing to change the status quo in the area.

New Delhi fears the construction of the road would allow China to cut off India's access to its northeastern states.

Ren Guoqiang, a spokesperson of the Chinese defence ministry, in a statement called on the Indian side to swiftly address the situation in a proper manner to restore peace and tranquillity in the border region.