India to Expedite Import Approvals for Chinese Goods Amid Warming Ties

New Delhi is set to accelerate the clearance of pending import proposals for a range of goods from China and other countries, including electronics parts, shoes, and steel, signaling a thaw in relations and a response to rising domestic demand.

The move comes after a pause in approvals following border skirmishes in 2020, but recent improvements in India-China relations and increased consumer spending—boosted by recent Goods and Services Tax (GST) cuts—have prompted the government to act. The Department for Promotion of Industry and Internal Trade (DPIIT) has requested manufacturers to provide details on delayed foreign manufacturer certification schemes, and is preparing to resume issuing and renewing licenses. “We will soon begin issuing and renewing licences for suppliers from several countries, including China,” a senior government official stated. “We will initiate the process and assess applications on a case-by-case basis.”

The decision aims to address supply shortages, particularly as the festive season drives up demand for consumer goods like automobiles and electronics, with some items now facing weeks-long waiting periods. Bureau of Indian Standards (BIS) approval is mandatory for many imported products, and while domestic factories received swift approvals, overseas plants, especially those in China, faced significant delays. This shift in policy could alleviate pressure on industries reliant on imported components, such as the electric vehicle sector, which recently saw a resumption of heavy rare earth magnet exports from China after a six-month halt – a development detailed by the Reuters.

While Foreign Direct Investment (FDI) restrictions for Chinese companies remain in place, requiring government approval, the easing of import procedures represents a significant step towards normalizing trade relations. The government initially slowed approvals to encourage domestic manufacturing and value addition, but has acknowledged the industry’s need for time to build local capabilities, as highlighted in reports from Livemint. Officials indicated they will continue to assess the impact of these changes on localization efforts.

The Centre expects to begin processing applications immediately, with a focus on meeting current demand and ensuring a stable supply chain for the upcoming months.