BRICS Summit: India May Push China To Ease Critical Technology, Component Supply Curbs

New Delhi, Sep 8 (KNN) India may use the upcoming BRICS Summit in New Delhi to raise concerns with China over restrictions and procedural hurdles affecting access to critical technologies and components, as both countries seek to rebuild economic ties.

The government has begun discussions with industry representatives on trade and investment barriers involving China, according to a report in The Indian Express. 

The inputs could inform India’s engagement with Beijing during the September 12-13 summit, which Chinese President Xi Jinping is expected to attend.

The Commerce and Industry Ministry’s China desk has been examining customs-related measures affecting imports of technology-linked products, a government official told the newspaper.

Industry Flags Supply Chain Concerns

Indian industries remain dependent on China for several critical components. Automakers, for instance, have been exploring alternative sources after delays in the supply of rare-earth magnets used in electric vehicle motors and other applications.

The renewable energy sector has also flagged restrictions affecting ingot and wafer technology, battery cells and cell-manufacturing equipment over the past 12-15 months. Equipment and components used in high-voltage direct current (HVDC) transmission systems have also reportedly faced restrictions.

The developments have heightened concerns as India seeks to diversify supply chains while expanding renewable energy and upgrading its power infrastructure.

Economic Engagement Shows Signs of Recovery

The potential discussions come amid a gradual improvement in India-China economic engagement following a deterioration in bilateral ties after the 2020 border clash.

Chinese Ambassador Xu Feihong met Commerce Secretary Rajesh Agrawal on September 1 to discuss bilateral trade and related issues. Earlier, Commerce and Industry Minister Piyush Goyal held talks with Chinese Commerce Minister Wang Wentao during the WTO ministerial conference in Cameroon in March.

India’s exports to China rose more than 28 per cent year-on-year to USD 5.55 billion during April-June, according to official trade figures cited by The Indian Express.

India has also eased some restrictions on Chinese participation. In March, it amended the FDI framework introduced through Press Note 3 of 2020. State-run Bharat Heavy Electricals Ltd was also allowed to source 21 categories of critical equipment from China under a five-year relaxation.

In June, four Chinese-linked power equipment manufacturers operating in India received two-year exemptions from registration requirements for certain government power-sector tenders.

The developments point to a calibrated approach, with India easing selected domestic restrictions while seeking greater access to critical technologies and components from China.

(KNN Bureau)