India set to resume approvals for Chinese imports after five-year freeze
India is preparing to accelerate approvals for importing goods from China and other countries after a nearly five-year halt following border tensions. The government aims to ease mandatory certification processes for overseas manufacturing plants to alleviate supply shortages in sectors like electronics, steel, and household items. This move follows rising consumer demand fueled by recent GST tax cuts and signals a warming in bilateral trade relations.
India had halted approvals for imports from China since early 2020 amid worsening diplomatic ties after border skirmishes. This freeze affected goods including electronics components, footwear, household items, steel products, and raw materials, creating supply chain disruptions and inventory shortages in key sectors. In response to surging demand—intensified by recent Goods and Services Tax (GST) rate reductions—the Indian government is now expediting the processing of pending import applications by reassessing mandatory plant certification requirements for foreign manufacturers, including Chinese units. The Department for Promotion of Industry and Internal Trade (DPIIT) has reached out to manufacturers and industry bodies to identify delays and streamline approvals. With sales in consumer electronics and automobiles peaking, shortages and waiting periods have emerged for premium products like large-screen TVs and refrigerators. Resuming imports aims to bolster local supplies and relieve domestic manufacturing sectors facing stockouts. This policy shift marks a thaw in India-China trade ties as both countries cautiously reset economic cooperation amidst broader geopolitical complexities. The move also complements India's broader strategy to enhance supply chains and industrial production capacities while navigating strategic competition with China.
