Govt to fast-track clearing pending import approvals for Chinese goods

The import approvals for goods from China and other countries will cover electronics parts, shoes, steel, household items, raw materials, and other daily-use goods

The government plans to expedite the clearance of pending import approvals for goods from China and other countries, signalling a potential easing of trade tensions with Beijing.

 

According to The Economic Times, the Department for Promotion of Industry and Internal Trade (DPIIT) has sought company-wise details of delayed foreign manufacturer certifications. The government plans to start issuing and renewing licences for overseas suppliers, including Chinese firms, on a case-by-case basis.

 

Approvals will cover parts of electronic products, shoes, steel, household items, raw materials, and other daily-use goods.

Thawing ties with China

Import clearances were halted after the 2020 border clashes between India and China. Beginning on May 5, 2020, Chinese and Indian troops engaged in aggressive melee, face-offs, and skirmishes at locations along the Sino-Indian border. 

 

The move follows improving diplomatic ties, especially after strained relations with the US, and surging domestic demand after recent goods and services tax (GST) cuts.

India-China relations

The decision also aligns with Beijing’s recent resumption of rare earth magnet exports to India, marking a thaw in trade relations.

 

Amid improving ties, the Indian government is also finalising rules to cut down visa delays for Chinese technicians, responding to complaints from businesses that say the restrictions are hurting the country’s ability to become a manufacturing hub.

 

As reported earlier by Business Standard, the Department for Promotion of Industry and Internal Trade is collaborating with the Ministries of Home and External Affairs to establish a framework that will expedite visas for engineers and technicians required to install Chinese-made machines in Indian factories.

Easing supply bottlenecks

The step aims to ease supply bottlenecks during the festive season, as inventory shortages hit sectors like consumer electronics and automobiles.

 

High domestic demand and tax cuts have led to stockouts and long waiting periods for premium appliances such as large-screen TVs, dishwashers, and refrigerators. Delays in BIS-approvals (Bureau of Indian Standards) for Chinese plants had earlier disrupted supply chains. The Bureau of Indian Standards certification is mandatory for all manufacturing units, including foreign ones, under the Quality Control Order.