India slapped new trade curbs on some of its neighbors, in a move primarily seen aimed at keeping Chinese businesses out after a border conflict and worsening economic ties between the two nations.
Companies from nations that share a land border with India are barred from bidding for government contracts for goods and services until they register with the industry department, according to an official statement. Previously, New Delhi had made it mandatory for
suppliers to mention the country of origin on the government’s e-Marketplace while bidding for tenders. The measure is the latest in a series of steps taken by Prime Minister Narendra Modi’s government to wean India away from reliance on China — New Delhi’s biggest source of imports. Earlier, the administration banned the use of 59 Chinese apps, while goods purchased from China were delayed at Indian ports after a deadly conflict between the neighbors along a disputed Himalayan border left several soldiers dead on both sides.
The development comes at a time when both the nations are engaged in talks to defuse a border stand off. India on Thursday said it expects the Chinese side to be sincere in completing the disengagement of troops along the Line of Actual Control.
India imported goods worth over $70 billion from China in 2019 while the bilateral trade deficit stood at about $50 billion, much higher than with any other trading partner.