India is reportedly exploring a policy shift that could ease tariffs and import restrictions on select Chinese goods—part of a broader effort to rebalance trade ties and support domestic industries dependent on imported inputs.
According to Reuters, the Commerce Ministry and NITI Aayog are in talks to reduce or remove duties on key Chinese imports used in engineering, leather, and manufacturing, where local production remains insufficient. The proposal includes letting some anti-dumping duties expire and rationalizing customs tariffs on raw materials critical for Indian exporters.
The move signals a strategic recalibration of India’s economic stance toward China, following years of trade friction after the 2020 border standoff. With both countries agreeing in August to revive business cooperation, this policy rethink could help stabilize economic ties.
Economists view the shift as a response to rising global protectionism, including the U.S.’s recent 50% tariffs on Indian goods. Lowering duties on Chinese inputs may help cut production costs, manage inflation, and improve export competitiveness, especially in sectors where India lags global rivals like Vietnam.
However, officials emphasize the approach will be selective and gradual, ensuring national security and Make in India priorities remain protected.
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