When America is eager to implement high tariffs on India from April 2, India is also considering taking advantage of reduced tension from China in recent times. India is watching it as a suitable time. According to the news of the Indian Express, there is a discussion between the departments to reduce or neutralize some restrictions on trade and investment imposed five years ago after a clash between Chinese and Indian soldiers in Galwan in 2020. There is also talk on making Chinese FDI easier.
India is considering these things
According to the news, the things that India is considering, these include easy economic results such as the removal of some tariffs and non-tariff barriers on the import of visa restrictions for Chinese personnel and the import of consignment. It is also being said that the government can allow some Chinese apps again. In addition, flights can be resumed. Issuing visas to Chinese scholars is already proposed proposed.
America can get a hint
It is being said that the notion in India is increasing that the US may get a sign by starting a clear close interaction with China to normalize business relations. It may probably serve as a possible rescue. Recently, a presentation has been made by the Finance Ministry in favor of opening some restrictions at the beginning of this financial year.
Sources say that improvement in business relations with China in later periods is inevitable. It is just a matter of time, but how it will be done, it is a matter of internal debate within the government.
Permission to invest from Beijing
It has been said in the news that the Indian side is now ready to allow investment from Beijing in view of the increasing trade deficit between the two countries. Despite many restrictions today, the trade flow remains significantly in China’s favor. The Government of India may consider relaxing the 2020 policy of the Center. Under this policy, the approval of the Center is required for investment from companies in countries sharing land border with India.
Bilateral trade between India and China
According to IBEF, bilateral trade between India and China in FY 2024 stood at US $ 118.40 billion in FY 2023 with a growth of 4% of US $ 113.83 billion in 2023. In FY 2024, China once again became India’s top trading partner, overtaking the United States after a two -year gap. Also, China is ranked 22nd in FDI equity flow in India with a cumulative FDI amount of US $ 2.50 billion from April 2000 to September 2024.
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