India will give relaxation on purchase of Chinese equipment, big decision taken after 5 years

In the year 2020, India had imposed a strict ban on the purchase of equipment from China. This step was taken due to increasing tensions in India-China relations, which had affected trade relations between the two countries. However, now after 5 years, the government has decided to provide relief to government companies in the purchase of Chinese equipment.

This change has allowed state-owned power and coal companies to import limited quantities of Chinese equipment. This decision was taken under the exemption given by the government to those companies which were already using Chinese equipment. Moreover, the move comes at a time when Indian companies were purchasing goods from other countries instead of importing from China.

After 2020, India had implemented a new policy for the import of Chinese bowdilators and other equipment, which now again signals the release of the import process from China.

The government says that this decision has been taken keeping in mind the business equation and requirements, so that companies do not face any hindrance in their business. Apart from this, from economic point of view, importing goods from China will give India an opportunity to strengthen trade relations with other countries.