India to expedite Chinese import licences as trade ties revive

In a significant policy shift marking an easing of trade tensions, India is preparing to resume and expedite approvals for imports from China and several other countries after nearly five years of stalled clearances. The move aims to meet the surging domestic demand for consumer goods, electronics, and industrial materials following recent GST rate cuts that have accelerated sales across sectors.Chinese-made goods, including electronics components, footwear, household items, steel products, and raw materials, are expected to gradually re-enter Indian markets as the government begins processing long-pending applications from local companies. The approvals had been suspended since early 2020, following border clashes that led to a sharp downturn in diplomatic and trade ties.
According to information, the Department for Promotion of Industry and Internal Trade (DPIIT) has reached out to manufacturers to identify cases where certifications for foreign suppliers have been delayed. The government plans to initiate the approval process for overseas plants on a case-by-case basis, prioritising industries facing acute supply shortages.Under the Bureau of Indian Standards (BIS) framework, all goods covered under the Quality Control Order require certification of the manufacturing facility—domestic or foreign before being imported into India. While domestic units continued to receive timely approvals, the certification of overseas plants, particularly those in China, had slowed considerably in recent years, disrupting supply chains across key sectors.
The resumption of clearances comes at a time when several consumer industries are grappling with stockouts. Recent GST rate cuts have prompted companies to reduce prices, triggering a sharp rise in purchases of large-screen televisions, air conditioners, washing machines, and automobiles. Manufacturers have reported extended waiting periods for high-end electronic goods as inventories have depleted faster than expected.A senior government official reportedly stated, “We will soon begin issuing and renewing licences for suppliers from multiple countries, including China. The process will help ease current shortages and stabilise supply chains before the end of the festive and year-end season.”The government’s decision is also seen as part of a broader improvement in India-China trade engagement. In recent months, China has resumed the export of heavy rare earth magnets to India, a critical component for electric vehicles, renewable energy systems, and consumer electronics manufacturing.
Industry leaders have welcomed the development, stating that while the government’s localisation push has strengthened domestic manufacturing, supply bottlenecks for key inputs have hindered production schedules. “Policy flexibility is essential,” said the chief executive of a leading electronics company. “We need a balance between promoting local value addition and ensuring smooth availability of imported components.”On the diplomatic front, the renewed trade movement coincides with improved engagement between New Delhi and Beijing. Direct flights between the two countries have restarted, and India has resumed processing business visas for Chinese nationals, signalling an effort to normalise bilateral relations.The accelerated import clearances are expected to ease pressure on manufacturers, restore inventory levels, and support India’s broader goal of maintaining stable growth amid rising consumer demand.

(Business Correspondent)