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.