Monday, March 30, 2026-India has eased long‑standing restrictions on imports from China by authorising select state‑run companies to procure critical machinery and components directly from Chinese suppliers.
The decision reverses parts of tighter controls put in place after deadly border clashes with China in 2020 and comes as New Delhi moves to address persistent equipment shortages that have stalled major power and industrial projects.
The authorisation allows firms like Bharat Heavy Electricals and the Steel Authority of India to source specified critical equipment and parts from China, aiming to reduce delays and keep key infrastructure initiatives on track.
Under the revised rules, Bharat Heavy Electricals Limited (BHEL) can now import up to 21 types of critical equipment from China, while Steel Authority of India Limited (SAIL) has been cleared to procure certain specialized components essential for its operations.
Other state‑run firms involved in coal‑gasification projects have also received approval to source Chinese‑made equipment needed to sustain development work. Officials say this move reflects a pragmatic shift in India’s trade policy, balancing supply chain needs with economic priorities as infrastructure demands grow.
The policy change follows diplomatic engagement at the highest level between India and China, including talks aimed at improving bilateral relations and easing economic tensions.
Alongside this shift, New Delhi has also relaxed some requirements for Chinese companies bidding on Indian government contracts, signalling a broader thaw in trade restrictions. The adjustments mark a notable recalibration of India’s approach to Chinese imports, driven by immediate industrial requirements and efforts to stabilise supply chains in critical sectors.
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