India Plans to Scrap Curbs on Chinese Firms for Govt Contracts, Sources Say

• India's finance ministry plans to remove five-year-old restrictions on Chinese firms bidding for government contracts, aiming to revive commercial ties.
• Curbs, imposed in 2020 after a border clash, required Chinese bidders to register with an Indian committee and obtain security clearances.
• The restrictions effectively barred Chinese firms from an estimated $700-750 billion in Indian government contracts, leading to project delays and shortages.
• The decision, awaiting approval from PM Narendra Modi's office, follows requests from ministries facing constraints and a recommendation from a high-level committee.
• Easing comes amidst improved India-China ties, including Modi's recent visit and direct flights, despite continued FDI restrictions.

Why It Matters: India plans to lift restrictions on Chinese firms for government contracts to boost commercial ties and ease project delays.