They're searching for measures together with permitting anti-dumping duties to lapse on sure merchandise, whereas contemplating tariff cuts on uncooked supplies utilized in sectors resembling leather-based and engineering items the place home capability stays restricted, the sources mentioned.
New Delhi is caught between balancing commerce relations with Washington – which has imposed punitive tariffs on imports from India – and Beijing, which till earlier this yr had slowed provides of key items, together with fertiliser, to India.
Rebuilding ties after 2020 border conflict
In August, India and China agreed to spice up enterprise hyperlinks because the neighbours rebuild ties broken by a 2020 border conflict.
“A consensus is rising throughout the authorities and the trade that, whereas negotiating a take care of Washington, India must fine-tune its commerce coverage, together with commerce relations with China,” one of many authorities officers mentioned.
Each the commerce ministry and the NITI Aayog – a authorities coverage think-tank – have backed trade calls to chop import tariffs on uncooked supplies at inter-ministerial conferences, a second official mentioned, noting international locations resembling Vietnam import Chinese language uncooked supplies at zero responsibility, placing Indian producers at a drawback. Nonetheless, the ultimate choice on responsibility cuts rests with the finance ministry, the official mentioned, noting cheaper Chinese language uncooked supplies have boosted exports of Apple's smartphones, prescription drugs, chemical substances and engineering items. The sources spoke on situation of anonymity as particulars aren't public. India's commerce ministry did not instantly reply to an e mail searching for remark.
Rising Chinese language imports
Responding to trade calls for, the commerce ministry final month prolonged advance authorisations for quality-controlled inputs from 180 days to 18 months – easing essential Chinese language uncooked materials imports.
India's imports from China rose greater than 16% to greater than $11 billion in September, with imports touching $91 billion within the first 9 months of 2025, up from about $80 billion a yr in the past.
Exports rose modestly to about $15 billion, widening the commerce hole in Beijing's favour, commerce ministry information confirmed.
The federal government would additionally not renew anti-dumping duties on gadgets resembling axle beams, steering parts and high-tenacity polyester yarn, one other authorities supply mentioned.
Nonetheless, India's commerce treatments authority has launched new anti-dumping probes on imports resembling cranes, toner cartridges and photo voltaic cells from China after native complaints.
“This isn't about abandoning self-reliance coverage,” the official mentioned. “It is about recognising that development wants international inputs – and China stays too central to disregard.”
Rising dependence on China
India's reliance on essential Chinese language provides has deepened in quite a lot of classes.
Imports now account for 91% of embroidery machines, 92% of noticed blades, 72% of inverters and half of UPS techniques, mentioned Ajay Srivastava, founding father of International Commerce Analysis Initiative, a Delhi-based think-tank.
Almost 90% of antibiotics, silicon wafers, flat-panel shows, and 80% of laptops are additionally imported from China, in line with International Commerce Analysis Initiative.
The commerce deficit hit almost $94 billion in 2024 and will widen to $120-$130 billion in two to 3 years, pushed by rising imports of electronics parts, chemical and industrial inputs, the second authorities supply mentioned.
New Delhi was additionally contemplating easing Chinese language funding curbs case-by-case, the place nationwide safety danger was minimal, mentioned the official, a senior authorities adviser, referring to a overseas funding coverage that tightened guidelines for nations sharing land borders with India, primarily China.
