ORIGINALLY PUBLISHED IN DE MODE
Article Published on: 24TH MARÂ 2025 | www.demodemagazine.com
With India-China border tensions easing, policymakers are now considering improving bilateral economic ties. This shift comes as the U.S., under President Donald Trump, pressures India on tariff reductions and trade terms.
Government departments are discussing ways to soften restrictions imposed after the 2020 Galwan clashes. Industry groups have pushed for economic measures, including easing visa restrictions for Chinese personnel, reducing trade barriers, and reconsidering bans on some Chinese apps. The resumption of flights and visas for Chinese scholars is also being explored.
On the investment front, India is contemplating relaxing its 2020 policy, which mandates central approval for investments from bordering nations. This move aims to counterbalance India's growing trade deficit with China, as trade remains heavily skewed in Beijing’s favor despite restrictions. If implemented, these measures could mark a significant step toward economic normalization between the two nations.