India to Resume Approvals for Chinese Imports After Five-Year Freeze

In a significant policy shift, India is set to resume approvals for importing goods from China and other countries, ending a five-year freeze imposed after border tensions escalated in 2020. According to government sources, the move is part of a larger strategy to ease supply chain disruptions, support domestic industries, and meet surging consumer demand, particularly following recent Goods and Services Tax (GST) reductions.

Background: The 2020 Import Freeze

India halted approvals for many imports from China in mid-2020, shortly after the Galwan Valley clashes, which led to deteriorated bilateral ties. The government placed non-tariff barriers such as,

  • Mandatory certifications for foreign manufacturing units
  • Delayed clearances for electronics, telecom gear, and industrial inputs
  • Tightened scrutiny of foreign direct investment (FDI) from neighboring countries

These restrictions affected sectors like,

  • Consumer electronics
  • Footwear and household goods
  • Steel and industrial raw materials

What’s Changing Now

The government now plans to expedite approvals for these imports, primarily from,

  • China
  • Other Asian suppliers

Key changes include,

  • Fast-tracking pending proposals from Indian firms for components and finished goods
  • Re-evaluating the requirement for certifications of overseas manufacturing facilities
  • Balancing domestic production needs with import flexibility

The goal is to ensure supply sufficiency, especially in industries facing stockouts, while stimulating economic activity post-GST reductions on consumer products.

Strategic Balancing

While the new import policy signals openness, India is expected to maintain guardrails against security-sensitive sectors. For example,

  • Telecom and strategic electronics may still face strict oversight
  • Surveillance and dual-use technologies will likely remain under restrictions
  • Thus, the import thaw appears to be targeted, aimed at economic recovery and industrial support, not a blanket rollback of earlier curbs.
Shivam

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