India-china: After a decrease in border tension between India and China, now the central government is considering strengthening the trade relations between the two countries. The policy makers consider it a suitable time to improve India-China economic relations amidst US President Donald Trump’s pressure to reduce tariffs on India.
According to the report of the Indian Express, the government believes that normalizing the business relationship with China will give a clear message to the US and will help in dealing with Trump’s pressure. According to sources, there is a discussion between various departments of the Government of India to give relief in some restrictions on trade and investment with China. These bans were imposed in 2020 after a clash between Indian and Chinese soldiers in the Galwan Valley.
Government can take this big step
Based on the demands from the industrial sector, the government is seriously considering some important proposals. These include steps such as relaxation in visa rules for Chinese citizens, tariffs on Chinese products and reduction in non-tariff barriers and re-allowing some restricted Chinese apps.
Apart from this, it is being planned to release visas for Chinese scholars and to resume air services between India and China. In the field of investment, the Government of India is considering allowing capital flow from Beijing, so that the trade deficit between the two countries can be balanced. According to the current policy, the government’s approval is necessary for investment from countries sharing land border with India.
Strategy to give clear message to America
According to sources, some officials of the Government of India believe that by taking steps towards normalizing trade relations with China, the US can be indicated that India is capable of taking independent decisions about its trade policy. The government wants to show the business restrictions with China and show that it can take policy decisions according to its interests. The Finance Ministry also gave a presentation in favor of relaxing something in trade restrictions at the beginning of this financial year. At the same time, the Ministry of Commerce Ministry is also considering compulsory BIS certification and quality control order (QCOS) on imported products from China.
Decision will be beneficial for small and medium industries
According to a senior official, it has now become necessary to restore business relations, especially in the post -President’s tenure. Long and medium industries had been demanding the removal of trade and non-traditional obstacles for a long time. Apart from this, there is also a discussion on giving some relief in visa rules to allow Chinese technicians and workers working in infrastructure projects to work in India.
China is interested in business restoration
According to sources, China is also keen to re -establish trade relations with India. China has proposed to encourage investment of Chinese companies in the Indian market keeping in mind India’s growing trade deficit. In 2023, the trade deficit between India and China exceeded $ 83 billion. China is mainly exported to primary products from India, while the goods imported from China see a lack of competition in the Indian market, causing this deficit to increase.
Graduate discount will be given slowly
According to a senior official of the Government of India, business restrictions with China may be gradually exempted, allowing Chinese companies to invest in India. However, the government will ensure that Chinese companies participate only in partnership with Indian companies and China’s stake in those projects was minority. This will encourage Chinese investment in India in a controlled manner, which will benefit the Indian market and companies.
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