International Desk: Trade tensions between India and the US are increasing. In such a situation, India is now considering reducing non-trade barriers and reducing Chinese FDI (foreign direct investment). Due to the continuous increase in tariffs from the US, India is looking for new options to balance its trade relations. The trade deficit between India and China is continuously increasing. In such a situation, the Indian government is now considering allowing investment from Beijing. Many restrictions were imposed after the Galwan Valley conflict in 2020, but now there is talk of relaxing these restrictions. According to sources, the process of approving investments by Chinese companies can be simplified. Till now, India’s policy was that government approval would be required for investment from any neighboring country. But a change in this policy is possible, which can help reduce the trade deficit.

Chinese products may face fewer barriers.
In view of the demands of the trade industry, non-tariff barriers imposed on some Chinese products are likely to be removed. This may include electronics, IT products and other items. Plans are also being made to make BIS (Bureau of Indian Standards) certification mandatory to ensure the quality of products coming from China.
Relaxation in the stance on visas for Chinese workers
The Indian government is now considering some relaxation in granting visas to Chinese workers. The visa process can be made easier, especially for Chinese engineers and technicians working on Indian infrastructure projects.
India wants to send a signal to the US.
This move by India is also being seen as a signal to the US. Amidst US President Donald Trump’s tariff pressure, India wants to show that it can strengthen trade relations with China. This will put pressure on the US to start fresh negotiations with India on tariffs.
India is also important to China.
China is also showing interest in increasing trade with India. In recent years, China has expressed its desire to increase investment in India. However, so far China ranks 22nd in terms of FDI in India. But given the growing trade deficit, Beijing wants more opportunities for its companies in the Indian market.
India-China Trade: In numbers
In the financial year 2024, bilateral trade between India and China was $ 118.40 billion.
China surpassed the United States to become India’s largest trading partner.
India imported goods worth $ 101.74 billion from China, which is 15% of total imports.
India’s trade deficit with China exceeded $ 83 billion in 2023.
A major challenge for India
The trade balance between India and China is a major challenge for India. India mainly exports basic goods, while importing high-value products from China. Apart from this, there are many restrictions on the export of pharmaceuticals, IT and agricultural products, which is further increasing the trade imbalance.
Government’s roadmap ahead
Consideration of removing non-tariff barriers – Import restrictions on some products may be removed.
Visa relaxation for Chinese workers – Visa policy will be simplified for Chinese workers working in Indian companies.
New rules on FDI – Approval process for investments from China may be simplified.
Strategy to balance the US – Pressure on the US can be created by normalizing trade relations with China. Consider removing non-tariff barriers – Import restrictions on some products may be removed.
Adaptation to the situation of Chinese workers – Visa policy will be simplified for Chinese workers working in Indian companies.
New rules on FDI – Approval process for investments from China may be simplified.
Strategy to integrate the US – The US can be pressured to normalize trade relations with China.