15 hrs ago
India Seeks Trade Reciprocity With China at BRICS Summit
India and China are expected to discuss trade during the BRICS Summit in New Delhi.
India is concerned that Chinese rules are making it harder to obtain important technology and materials.
These include rare-earth magnets, battery cells, wafer technology and equipment for sending electricity over long distances.
Indian officials say these problems could slow the building of factories and power projects in India.
India may also ask China to make it easier for Indian companies to invest and do business there.
At the same time, some economic ties between the countries are improving.
Flights and border trade have resumed, and some Chinese power-equipment companies can bid for selected Indian government projects.
India’s exports to China also increased during April-June, although some planned talks were postponed because of border-related discussions.
India is consulting industry groups before expected BRICS talks with China in New Delhi on September 12-13.
Indian officials may raise Chinese Customs restrictions and delays affecting rare-earth magnets, batteries, wafer technology and HVDC equipment.
India is expected to seek reciprocity on investment restrictions, sourcing rules and procedural barriers faced by Indian companies in China.
Economic ties have partially improved through resumed direct flights, reopened border trade and selected exemptions for Chinese power-equipment firms.
India’s exports to China rose more than 28% to $5.55 billion during April-June compared with the same period a year earlier.
- Who
- The Indian government, Indian industry groups and Chinese officials, including Chinese President Xi Jinping, are expected to participate in discussions.
- What
- India may raise Chinese restrictions on technology imports, Customs delays, investment barriers and sourcing-related rules.
- Where
- The summit is scheduled to take place in New Delhi, with related discussions involving Beijing and India-China border areas.
- When
- The 18th BRICS Summit is scheduled for September 12-13, 2026; related economic discussions and policy changes were reported during the year.
- Why
- India says restrictions on Chinese technology and components are affecting manufacturing, renewable-energy development and power-transmission projects.
India’s Trade Concerns
Signs of Economic Thaw
Access to technology and components
India’s Trade Concerns
Indian officials and industry representatives say Chinese export restrictions and Customs delays are affecting rare-earth magnets, batteries, wafer technology, HVDC equipment and India’s manufacturing plans.
Signs of Economic Thaw
Trade between the countries continues, and India’s exports to China increased by more than 28% to $5.55 billion during April-June.
Investment and procurement rules
India’s Trade Concerns
India is expected to seek reciprocity because Indian companies face investment restrictions in China and Chinese sourcing rules create procedural obstacles.
Signs of Economic Thaw
India has eased selected restrictions, including allowing BHEL to source 21 critical items from China and permitting four Chinese-linked power-equipment firms to bid for certain tenders.
Overall bilateral engagement
India’s Trade Concerns
Border-related tensions continue to affect economic engagement, including the postponement of a planned Beijing visit by a senior Commerce Ministry official.
Signs of Economic Thaw
The Chinese Embassy says relations have maintained a good momentum of improvement, citing resumed direct flights, reopened border trade and increased people-to-people exchanges.
Key facts
- BRICS Summit
- The 18th summit is scheduled for September 12-13 in New Delhi.
- Expected Chinese attendance
- Chinese President Xi Jinping is expected to attend with a sizeable business delegation.
- India’s exports to China
- Exports rose more than 28% to $5.55 billion in April-June compared with the same period a year earlier.
- Technology concerns
- Reportedly affected items include rare-earth magnets, ingot and wafer technology, battery cells, HVDC equipment and specialised components.
- BHEL procurement
- Bharat Heavy Electricals Limited was allowed to procure 21 critical items from China for five years.
- Power-tender exemptions
- TBEA Energy, Nanjing Electric India, New Northeast Electric India and Taikai Electric (India) received exemptions to participate in certain critical power-project tenders.
- Recent bilateral meeting
- Chinese Ambassador Xu Feihong met Commerce Secretary Rajesh Agrawal on September 1 to discuss economic and trade relations.
Quotes
Senior renewable energy sector executive
Renewable energy industry executive with sourcing exposure in China
“China has imposed restrictions on the export of ingot and wafer technology, battery cells and cell technology. For example, in the transmission sector, exports of High Voltage Direct Current (HVDC) and specialised components are also being restricted.”
indianexpress.com
“I think it is very critical that the government finds a way to tide over some of these issues because otherwise our entire backward integration, which makes India competitive, will unfortunately be stopped and won’t be successful”
indianexpress.com
Pratik Agarwal
Managing director of Sterlite Electric and chairman of Serentica Renewables and Resonia
“China’s restrictions on the export of critical technologies and specialised components, including those required for HVDC and advanced transmission systems, underline the strategic vulnerabilities of global supply chains.”
indianexpress.com
Sources
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