India Eases Curbs: State Firms Can Now Procure Critical Equipment from China

• India has relaxed rules, allowing state-run firms like Bharat Heavy Electricals and Steel Authority of India to procure critical equipment from China.
• This move follows earlier reports of India easing restrictions on Chinese equipment imports for power and coal companies due to shortages and project delays.
• Bharat Heavy Electricals can now procure 21 types of critical equipment, while Steel Authority of India is authorized for certain components and coal-gasification equipment.
• The relaxation marks a calibrated reset in economic ties, initially tightened after the 2020 border clash, to stabilize supply chains and attract investments.
• The government order exempts Chinese bidders from political and security clearances for state contracts, and investment curbs in select sectors have also been eased.