India’s finance ministry is poised to scrap five-year-old restrictions blocking Chinese firms from bidding on government contracts, sources say. The curbs, slapped on after the deadly 2020 border clash with China, required special clearances that sidelined Beijing’s companies from billions in deals.
Power and infrastructure projects have suffered from equipment shortages and bidding delays ever since. Ministries flagged these bottlenecks, leading a high-level panel headed by ex-cabinet secretary Rajiv Gauba to push for relief. Chinese giant CRRC, for instance, got bounced from a $216 million train contract right after the rules kicked in.
The shift signals thawing trade ties as border tensions cool. Officials aim to ditch the mandatory registration, though Prime Minister Narendra Modi’s office has the final say. Contracts at stake total $700-750 billion.
This comes amid India’s push to balance security with economic needs no formal announcement yet, but the plan’s gaining steam.
