New Delhi: India’s Finance Ministry is reportedly finalising a proposal to ease stringent restrictions that have largely kept Chinese companies out of government contracts for nearly five years, according to a Reuters report on Thursday. The possible rollback signals a shift in New Delhi’s economic approach as it looks to stabilise commercial ties with Beijing amid project delays and equipment shortages impacting infrastructure and energy sectors.
The restrictions were introduced in July 2020 following the Galwan Valley clash, through an amendment to the General Financial Rules. The policy required bidders from countries sharing land borders with India to undergo mandatory registration and obtain political and security clearances, effectively excluding Chinese firms from public procurement estimated at $700–750 billion annually.
Ref: https://www.news18.com/business/is-india-weighing-opening-up-govt-contracts-to-chinese-firms-following-five-year-freeze-9818370.html
