India to resume Chinese imports after 5-year freeze
What's the story
India is set to resume approvals for Chinese imports, including electronics parts, shoes, household items, steel products, and raw materials. The move comes after a five-year freeze on such imports due to deteriorating relations with China over border skirmishes in early 2020. The decision is seen as a sign of improving ties between the two countries and is aimed at meeting the rising demand for consumer goods in India.
Import strategy
Clearing of pending proposals
The Indian government is now looking to clear pending proposals from local companies for importing goods from China and other nations. This includes issuing mandatory certifications of plants in these countries to speed up their exports to India. The Department for Promotion of Industry and Internal Trade (DPIIT) has asked manufacturers for details where foreign manufacturers' certification scheme is getting delayed.
License issuance
Licenses for suppliers
A senior government official has confirmed that the government plans to start issuing and renewing licenses for suppliers from several countries, including China. The process will be initiated soon and applications will be assessed on a case-by-case basis. This move is aimed at helping industries meet the rising festive demand in India.
Approval process
Bureau of Indian Standards (BIS) approval
The Bureau of Indian Standards (BIS) approval is mandatory for sourcing finished products and their components/ raw materials under Quality Control Order (QCO). This includes everything from electronic goods to shoes, even B2B products. A team of BIS officials visits overseas manufacturing facilities as part of this certification process. While local factory approvals were instant, overseas plants faced delays, especially those in China, disrupting supply chains in India.
Trade talks
Resumption of trade talks
The latest decision is seen as a sign of renewed engagement in India-China trade talks. This comes after Beijing's decision to resume exports of heavy rare earth magnets to India after a six-month halt. The development has eased pressure on domestic manufacturers in the electric vehicle, renewable energy, and consumer electronics sectors.