India to Reopen Government Contracts for Chinese Firms: A New Era in Bilateral Ties?

• India's Finance Ministry plans to lift five-year-old restrictions on Chinese companies bidding for government contracts, signaling a thaw in India-China relations.
• The move aims to restart commercial relations amid reduced border tensions, potentially opening doors for Chinese firms to participate in India's estimated $700-750 billion government contracts.
• Restrictions were imposed in 2020 after the Galwan clash, requiring political and security clearances, which effectively barred Chinese companies.
• The decision, awaiting final approval from PM Narendra Modi's office, comes after government departments reported project delays and shortages due to the ban.
• This shift is also seen as a response to US tariffs on Indian goods and follows PM Modi's recent visit to China to deepen trade relations.

Why It Matters: India plans to ease restrictions on Chinese firms for government contracts, signaling improved bilateral trade ties.