India authorizes state firms to import critical equipment from China
India just made a big move: some state-run companies were authorized to procure critical equipment from China on March 27, 2026.
This change is meant to fix delays and shortages in the power and coal industries that have dragged on since strict import rules were put in place after the 2020 border clash.
Bharat Heavy Electricals was authorized to procure specified types of critical equipment, and Steel Authority of India was authorized for certain critical components; coal-gasification equipment sourcing was authorized separately for other state-run firms.
India eases China restrictions after meeting
This new approach comes after a major meeting between Prime Minister Modi and Chinese President Xi Jinping last August.
Along with opening up imports, Chinese companies bidding for Indian state contracts no longer need extra security clearances.
The two countries also resumed direct flights and New Delhi eased visa procedures for Chinese business professionals, a sign that trade ties are warming up again.