India Resumes Chinese Import Approvals Amid Make in India Goals

(INDIA) India will resume approvals for Chinese imports after a nearly five-year pause, government officials signaled this week, moving to clear a large backlog of pending applications and ease pressure on factories and retailers ahead of peak shopping months. The freeze began in early 2020 after border clashes and a sharp drop in diplomatic ties. Companies importing electronics components, footwear, household items, steel products, raw materials, and other finished goods are among those affected.

The decision, described by industry groups as overdue, targets clogged supply chains and months-long delays that have kept parts and products stuck in limbo.

What the plan involves

Officials say the plan is to fast-track pending cases by granting mandatory approvals for Chinese manufacturing plants that meet Indian standards. That means clearing shipments only after checking quality and safety at the factory level, not just at Indian ports.

• Clearances will rely on Bureau of Indian Standards (BIS) certifications, with inspectors confirming that approved Chinese plants meet set norms for quality and safety.
• An official page for the Bureau of Indian Standards outlines how these certifications work and how products are tested before entering the market.
• By pushing more decisions upstream to the factory level, the government aims to reduce repeated port-side holds that have kept supply chains jammed.

The move follows a burst of domestic demand linked to recent cuts in the Goods and Services Tax (GST). Higher orders for consumer goods, appliances, and construction inputs have strained stocks, with many factories reporting gaps due to missing parts.

• The backlog is especially visible in electronics and light manufacturing, where even small delays create shutdown risks across entire production lines.

Controls, limits, and safeguards

The change does not mark a return to business as usual. Authorities stress:

• Checks will continue on a case-by-case basis.
• Security and quality screens remain in place.
• The step is framed as a practical move to prevent shortages, not a policy shift on broader strategic concerns.

Clearances will be conditional on BIS certifications and factory-level inspections — a way to confirm compliance in one place and apply it across multiple shipments.

Why industry pushed for this

For businesses that build phones, appliances, cables, auto parts, and solar equipment in India, resuming approvals is primarily about keeping production lines running. A handset maker in Noida put it plainly: one stuck sensor can halt an entire batch.

• Retailers expect relief ahead of the festive season: sales depend on stable stock, and months of stop-start approvals left shelves thin for items like lighting, decorations, and small appliances.
• The return of approved shipments of “jhalar” (string lights) and other low-cost goods will help stores meet holiday demand.

This is not a wholesale opening, but it provides a controlled path to get goods flowing under tighter controls.

People flow: visas for technicians

The government is also working to streamline visa approvals for Chinese technicians who install and service complex equipment at Indian plants. Companies say these technical visits are often time-sensitive.

• When a new line is set up, the team that built the machines usually needs to be on site to ensure safe commissioning.
• Longer waits have left costly equipment idle.
• Officials describe quicker reviews for such workers as part of the same push: keep factories on schedule while maintaining quality and security checks.

According to analysis by VisaVerge.com, aligning visa processing for specialist workers with faster plant approvals reduces downtime and helps avoid production slips without lowering standards.

Political context: Make in India vs. practical needs

The policy sits uneasily with the government’s long-running “Make in India” campaign, launched in 2014 to expand local manufacturing and reduce reliance on China. Some progress is visible in parts of the telecom and semiconductor chain, where import shares from China have dropped. But the broader picture remains challenging.

• India still depends on Chinese inputs for many products, even when final assembly happens domestically.
• The mix has shifted away from finished goods and toward upstream components and raw materials.
• By 2025, manufacturing’s share of GDP fell below 14%, lower than when Make in India began.

Industry groups argued that Indian jobs depend on steady supplies of inputs until deeper local ecosystems grow. Without a calibrated fix, they said, shortages would hit small and mid-size firms hardest since they lack the cash to hold big inventories or switch suppliers quickly.

Supporters of tighter limits counter that easing approvals risks locking India into dependence where domestic firms never build scale. They push for deep incentives to boost local parts and materials, not just final assembly.

For now, the government’s message is control and continuity: keep the resume approvals process disciplined, guard standards, and meet demand.

Tax and cost dynamics

There is also a clear tax angle. GST cuts pushed demand up but trimmed margins for some items, leaving little room for extra freight charges, demurrage, or repeat testing.

• Delays at ports and ad hoc lab checks have added costs that businesses could not fully pass on.
• Fast-tracking plant-level approvals aims to remove that friction by confirming compliance in one place and applying it across many shipments.
• Businesses hope this will stop the cycle of rework and re-testing at each entry point, which has been a costly drag for both importers and customs agencies.

What will determine the durability of this change

How long this calibrated easing lasts will depend on three things:

1. The pace of domestic capacity growth.
2. The stability of the border.
3. The health of consumer demand after GST cuts settle.

• If local suppliers ramp up, dependence on upstream Chinese inputs could slowly decline.
• If tensions rise, approvals could slow again.
• If demand stays strong, pressure to keep goods moving will remain.

The coming months will test whether this middle path keeps both store shelves and assembly lines stocked without eroding the push for self-reliance.

Immediate and longer-term effects

For shoppers and small businesses, the immediate effects should be visible:

• Lighting, household tools, fittings, and low-cost electronics accessories are likely to reach stores in larger numbers.
• For factories, key components should arrive faster as plant approvals stack up, reducing the stop-start rhythm that has frustrated planners since 2020.

The government’s emphasis on BIS certifications gives officials a framework to move faster without dropping quality. That balance — faster flow with firm checks — will decide whether this reset becomes a lasting template or a short-term patch.

Key takeaway

What is clear is that India’s supply chains remain deeply connected to China. The choice to resume approvals does not erase Make in India; it acknowledges today’s reality: you cannot assemble a phone without the right chip, or run a new line without the specialist who built it.

By clearing backlogs for Chinese imports under tighter rules, and by easing travel for essential technicians, policymakers are betting that careful guardrails can support growth now while domestic capacity catches up.