India Weighs Easing Restrictions on China Amid Trade Deficit and US Pressure

With tensions between India and China easing along the border, Indian policymakers are considering relaxing certain trade and investment restrictions that were imposed after the 2020 Galwan clashes. This comes at a time when US President Donald Trump is pressuring India to reduce tariffs and meet Washington’s trade demands, making it an opportune moment for India to recalibrate its economic relationship with China.

Sources indicate that discussions are underway to soften some of the restrictions put in place five years ago. These include easing visa restrictions for Chinese personnel, lifting certain tariff and non-tariff barriers, and potentially allowing Chinese apps back into India. Proposals for resuming flights and issuing visas to Chinese scholars are also reportedly being discussed.

On the investment front, India is reportedly open to Chinese foreign direct investment (FDI), particularly to address the growing trade deficit with China. Despite current…