India looks to ease non-trade barriers, relax Chinese FDI

WITH SOME DIALLING down of tensions between India and China along the line of control, policy makers are more open to upgrading bilateral economic relationships now.

- SANDEEP SINGH & ANIL SASI

It is being viewed as an opportune time, particularly when US President Donald Trump is pushing India to the corner on reducing tariffs and forcing it to agree to terms set by Washington, especially on tariffs.

According to sources aware of developments, discussions are on between departments to dilute or neutralise some of the restrictions on trade and investments that were put in place five years ago after clashes between Chinese and Indian soldiers in Galwan in 2020.

Some of these proposals have gained traction following industry demands, and include low-hanging economic outcomes such as easing of visa restrictions for Chinese personnel and lifting some tariff and non-tariff barriers on imports of consignments. Some Chinese apps may be allowed again too, they said. Resumption of flights and issuance of visas to Chinese scholars are proposals already on the cards, the sources said.