The Government of India has announced that it will begin issuing approvals again for certain imports from China — signalling a major policy reversal after around five years of near-standstill in key categories. Imports of items such as electronics parts, household goods, shoes, steel products and raw materials are now up for faster clearance.
The freeze on many of these imports began following worsening relations with China in 2020, following border clashes and a wider strategic pull-back by India.
Why the Policy Change?
Meeting surging consumer & industrial demand
India’s domestic industries and consumer markets are facing shortages and higher demand for items such as large-screen TVs, washing machines, refrigerators and electronics components. The move to resume imports is partly driven by the need to meet festival-season demand and alleviate supply constraints.
Improved bilateral ties
This shift aligns with signs of a diplomatic thaw between India and China, including resumption of direct flights, restoration of visas and border trade assessments. The decision to ease import approvals can be seen as part of a broader attempt to stabilise relations.
Supply-chain rationalisation
India is trying to balance between promoting local manufacturing (“Make in India”) and ensuring supply-chain resilience. In certain goods, domestic capacity remains inadequate, so imports from China are being selectively eased.
What Will Be Imported & How Conditions Are Changing
- Products slated for faster approvals include electronics parts, shoes, household-use goods, steel and raw materials.
- The policy change involves easing the certification process: approvals under the Bureau of Indian Standards (BIS) for overseas manufacturing units (including Chinese plants) will be processed more systematically.
- Import licences and renewals will now be evaluated more steadily on a case-by-case basis. NewsBytes
Implications of This Move
For Indian industries & consumers
- Immediate relief: Consumers could see quicker availability of key items such as electronics, appliances and components.
- Industrial boost: Domestic manufacturers who rely on imported components may benefit from improved supply, especially in high-demand sectors like EVs, electronics and appliances.
- Price effects: Eased supply constraints may help reduce inflationary pressure on consumer goods.
For India-China trade relations
- This is a clear step towards normalising trade linkages after a period of strain.
- It remains a cautious reopening — import approvals are not blanket but subject to certification and plant-approval processes.
- It suggests that despite strategic competition, economic pragmatism is making a comeback in the bilateral relationship.
For Indian manufacturing policy
- The decision highlights the tension between protecting domestic manufacturing and ensuring access to global supply chains.
- It indicates that India will adopt a more calibrated strategy — selectively importing what is needed while continuing to push for localisation.
Key Risks & What to Watch
- Domestic backlash: Some local industry players may oppose easing imports fearing cheaper Chinese goods undercutting Indian manufacturing.
- Certification & quality checks: The effectiveness of BIS certification and plant audits will be critical. Any laxity could lead to quality, safety or compliance issues.
- Geopolitical risk: Future border or geopolitical flare-ups could re-freeze these import channels again — the thaw is fragile.
- Trade-deficit concerns: As China remains a large exporter to India, a rise in imports without parallel export growth could worsen India’s trade deficit.
- Selective rather than full resumption: The policy is not a full open-door — many goods may still face restrictions or higher scrutiny.
What to Monitor Next
- Volume and category of imports from China in coming months — which sectors benefit first?
- Any announcements of renewed bilateral trade-agreements, border-trade corridor reopenings or additional relaxation of regulatory barriers.
- Domestic industry responses — whether there are industry pleas, safeguards or anti-dumping investigations.
- Whether similar steps are taken for Chinese investment (FDI) or border trade besides just imports.
- Impact on pricing, availability and market competition of goods previously constrained by supply from China.
