In a significant development signaling a gradual thaw in India–China trade relations, the Indian government is set to expedite approvals for the import of goods from China after a five-year pause. The decision follows an improvement in diplomatic relations and aims to balance the country’s trade and manufacturing priorities amid increasing domestic demand.

Renewed Trade Momentum

The move marks a notable shift in India’s trade policy. After years of restricted engagement with Chinese suppliers, India is now opening doors for imports of key consumer and industrial goods, including electronics parts, steel, household items, raw materials, and shoes. The objective is to alleviate supply chain pressures and prevent stockouts, especially ahead of major festive and consumption-driven periods.

This policy shift comes on the heels of a meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping, hinting at renewed efforts to stabilize bilateral trade relations.

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Key Developments and Policy Highlights

Aspect	Details
Thaw in Relations	India to resume fast-tracking approvals for Chinese imports after a five-year freeze due to improved diplomatic ties.
Focus on Goods	Includes electronics parts, steel, household products, shoes, and raw materials to meet post-GST consumer demand.
Certification Re-evaluation	Mandatory certifications for overseas manufacturing plants under review to reduce supply chain disruptions.
Assessment Method	DPIIT to evaluate import applications on a case-by-case basis.
Support for Local Industry	Designed to help domestic manufacturers facing shortages and high demand before the festive season.
Approval Process	Bureau of Indian Standards (BIS) to conduct site visits for overseas manufacturers, accelerating pending approvals.
Recent Diplomatic Context	Decision follows a bilateral meeting between PM Modi and President Xi Jinping, signaling trade re-engagement.
Localisation Goals	India continues to push for local manufacturing and value addition while managing near-term import needs.
Investment Restrictions	FDI from Chinese companies still requires government approval despite import resumption.

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Targeted Import Categories

Category	Description
Electronics Parts	Essential components used in smartphones, appliances, and consumer electronics.
Household Items	Everyday utility products catering to mass consumer needs.
Steel Products	Both raw materials and finished goods to support construction and industrial sectors.
Raw Materials	Key inputs for manufacturing industries, particularly in MSME and consumer goods sectors.
Shoes	Footwear imports to meet growing retail and e-commerce demand.

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Balancing Imports with Self-Reliance

While easing import approvals, the Indian government remains committed to “Make in India” and localisation goals. This balanced approach seeks to ensure steady supply chains without undermining domestic manufacturing ambitions.

Industry analysts believe this decision could help stabilize input costs and maintain production continuity for Indian companies reliant on Chinese components, particularly in sectors such as electronics, steel, and consumer goods.

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In Summary:
India’s decision to resume import approvals from China represents a pragmatic response to supply constraints and growing market demand. While the focus remains on fostering local value creation, the short-term relaxation signals a willingness to prioritize economic continuity and trade stability over political rigidity.