The government plans to expedite the clearance of pending import approvals for goods from China and other countries, signalling a potential easing of trade tensions with Beijing.
According to media, the Department for Promotion of Industry and Internal Trade (DPIIT) has sought company-wise details of delayed foreign manufacturer certifications. The government plans to start issuing and renewing licences for overseas suppliers, including Chinese firms, on a case-by-case basis.
Thawing ties with China
Import clearances were halted after the 2020 border clashes between India and China. Beginning on May 5, 2020, Chinese and Indian troops engaged in aggressive melee, face-offs, and skirmishes at locations along the Sino-Indian border.
The move follows improving diplomatic ties, especially after strained relations with the US, and surging domestic demand after recent goods and services tax (GST) cuts.
India-China relations
The decision also aligns with Beijing’s recent resumption of rare earth magnet exports to India, marking a thaw in trade relations.
Amid improving ties, the Indian government is also finalising rules to cut down visa delays for Chinese technicians, responding to complaints from businesses that say the restrictions are hurting the country’s ability to become a manufacturing hub.
