Sources say the relationship between China and India may usher in a major turning point.
India may lift trade and investment restrictions on China
According to the Indian Express reported on the 24th, as the Sino-Indian border tensions have eased, India is now proposing a number of measures to relax the trade and investment restrictions previously imposed on China.
According to sources, negotiations have been going on for some time and specific easing measures are expected to be announced in the coming weeks.
According to sources familiar with the matter, various ministries of the Indian government are in advanced discussions on adjusting trade restrictions with China imposed after the 2020 border conflict.
Some of these proposals, which have already gained support from the Indian business community, could include:
Resuming direct flights between China and India and streamlining visa procedures for Chinese citizens;
Lifting the blanket ban and restrictions on Chinese cargo at Indian ports;
Remove some tariff and non-tariff barriers on imported goods;
Resuming some Chinese apps in India;
Ease restrictions on Chinese investment in India.
Regain its position as the largest trading partner
As two major emerging economies in the world, the bilateral trade relationship between China and India has shown a complex but close situation in recent years.
In 2024, China's exports to India reached $120.481 billion, a year-on-year increase of 2.4%, while imports from India decreased by 3.0% to $17.997 billion, and the total trade volume reached $118.4 billion, and China regained the throne of India's largest trading partner after two years.
According to the Global Trade Research Initiative (GTRI), Chinese goods account for 15% of India's total imports, with key sectors such as mechanical and electrical products and chemical raw materials accounting for a higher proportion.
"India's trade deficit with China has continued to widen despite various restrictive measures, prompting policymakers to reassess the effectiveness of existing policies," an analysis by India's Business Standard newspaper pointed out.
In addition, India and China also face aggressive tariff barriers from the United States, and close dialogue with China on normalizing commercial relations between the two countries could signal to the United States and "could serve as a potential hedge."
Vinu, the founder of India's Wire newspaper, said on the 24th that Trump's demand for tariff adjustments has brought great pressure, and India's improvement of trade and investment relations with China is welcome.
India to cut tariffs on US
New Delhi: India is willing to cut tariffs on $23 billion worth of US imports, government sources said on Tuesday. If implemented, this would be India's biggest tariff reduction in years and is aimed at quelling the Trump administration's upcoming "reciprocal tariff" plan.
U.S. President Donald Trump's announcement that reciprocal global tariffs would take effect on April 2 has roiled markets around the world and left policymakers scrambling, especially among U.S. Allies and longtime trading partners.
According to two Indian government sources, in an internal analysis, the Indian side estimated that such reciprocal tariffs by the United States would affect 87 percent of the total value of Indian goods exported to the United States, worth about $66 billion, if India maintains the existing tariffs.
According to the latest plan, India is willing to reduce tariffs on 55 percent of US imports (worth more than $23 billion), which are currently subject to tariffs of 5 to 30 percent. For these goods, India may significantly reduce or even completely eliminate import duties.
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