Finance Ministry (MoF) plans to scrap curbs on Chinese firms bidding for Indian government contracts.

Key facts

• The Finance Ministry (MoF) is working to remove the registration requirement for bidders from bordering nations.
• The restrictions, imposed in 2020 after a deadly clash, required Chinese bidders to register with an Indian government committee and obtain political and security clearances.
• The measures effectively barred Chinese firms from competing for Indian government contracts estimated to be worth $700 billion to $750 billion.
• China's state-owned CRRC was disqualified from bidding for a $216 million train-manufacturing contract months after the restrictions were unveiled.
• The value of new projects awarded to Chinese bidders fell 27% from a year earlier to $1.67 billion in 2021.
• Curbs on imports from China of equipment for the power sector have hindered India's plans to raise its thermal power capacity to about 307 GW over the next decade.
• A high-level committee headed by former cabinet secretary Rajiv Gauba has recommended easing the restrictions.
• India and China restarted direct flights and New Delhi cut red tape to speed approvals for business visas for Chinese professionals after Modi visited China last year.