The measures were introduced in 2020 after a border skirmish between the two Asian nations
India is planning to lift restrictions on Chinese companies bidding for government contracts, Reuters reported on Thursday.
The curbs were introduced in 2020 after a border clash between India and China that strained bilateral ties between the neighbors.
New Delhi had imposed an additional layer of clearances for companies based in countries that shared borders with India for participating in the procurement program.
The measures effectively targeted Chinese companies, according to the Reuters report.
The present plan by the Finance Ministry to ease the curbs is part of a broader reassessment of ties with China, the news agency added.
The proposed shift in policy is the latest sign of improved ties between New Delhi and Beijing.
India’s diplomatic engagement with China has gathered momentum since 2024, while military-level talks have helped defuse border tensions.
The thaw in relations began after a meeting between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping in October 2024 on the sidelines of the BRICS summit in Kazan, Russia. During the Kazan meeting, the two nations agreed to restore bilateral ties, including business, tourism, and cultural connections.
Modi and Xi also held talks on the sidelines of the Shanghai Cooperation Organization (SCO) summit in Tianjin in August 2025, where the two leaders agreed to further build ties.
Direct flights between China and India officially resumed in October 2025 after a hiatus of five years.
In December, Beijing relaxed visa rules for Indian nationals, allowing online applications, as both nations took another step toward normalzing economic ties. The move removed the need for initial in-person visits to Chinese diplomatic missions.
New Delhi also dropped a layer of bureaucratic scrutiny and shortened visa approval times to less than a month to fast-track business visas for Chinese professionals.
The growing warmth in India-China ties comes amid moves to bring new Russia sanctions legislation in the US, targeting both Asian giants. The bill, authored by Senator Lindsey Graham, a noted hawk, would authorize tariffs of up to 500% on imports from countries that continue to buy Russian energy products.
Beijing has accused the US of seeking to undermine its ties with India.
