India explores calibrated reset with China as global trade pressures mount: Report

Officials indicated that the approach under consideration would be gradual rather than broad-based, the paper reported

A phased and carefully calibrated opening of India’s economy to China is being examined at the highest levels of government, with any relaxation of restrictions tied to reciprocal steps from Beijing, the Indian Express reported citing people aware of the development.

The deliberations are taking place against the backdrop of a rapidly evolving global trade environment and the possibility of sharper US tariff measures, the report said.

Officials indicated that the approach under consideration would be gradual rather than broad-based, the paper reported. India has already eased procedures for issuing business visas to Chinese professionals, and the government is now assessing whether certain investment-related curbs could also be softened.

“The easing of norms for China is under work, but it will take time. Reciprocity is essential,” the newspaper said. China, the official added, continues to maintain restrictions on several services exports, the report added. Earlier, New Delhi had resumed flights to China, restarted issuing visas and various entry norms were also eased for engineers required in key projects.

Significant groundwork has already been undertaken. A high-level committee chaired by Rajiv Gauba, a member of NITI Aayog, had earlier recommended lifting curbs on Chinese investments. Separately, the Economic Survey 2023–24 had argued in favour of attracting Chinese investment to bolster India’s export competitiveness.

India introduced restrictions on Chinese investments through Press Note 3 in April 2020, which mandated prior government approval for investments from countries sharing a land border with India. The measure was intended to prevent opportunistic takeovers during the Covid-19 pandemic and has continued amid heightened national security concerns following the Galwan clash later that year.