According to an article in the Hindu newspaper dated August 1st, over the past few months, the Indian government has been seeking a balance between ‘maintaining its national strategic goals’ and ‘promoting increased trade and investment with the two major economies, the United States and China’. Under this approach, India has gradually adjusted several long-term policies, including relaxing restrictions on foreign direct investment in the e-commerce sector, allowing some Chinese companies to engage in foreign direct investment, and re-examining anti-dumping measures against goods from trading partners.
Reports indicate that India has rejected a large number of anti-dumping investigations against Chinese goods since this year, which is considered an important sign of a change in its trade policy towards China.
According to data from the Centre for Digital Economy Policy in India (C-DEP), during the approximately 30 years from 1991 to 2020, the Department of Foreign Trade in India submitted 1052 anti-dumping complaints to the Ministry of Finance. The Ministry of Finance rejected only 5 of these complaints, resulting in a rejection rate of about 0.5%. However, after 2020, the rejection rate increased significantly. From 2020 to the 2023 fiscal year, the rejection rate ranged between 50% and 62%. By the end of last year, during the 2025-2026 fiscal year, the rejection rate had risen to 41.5%.
Since 2000, cases involving Chinese goods have accounted for 72% of all cases that were denied recommendations.
An anonymous Indian government official stated that the rejection rate for cases related to China is high, which is related to the fact that most investigations and recommendations targeting China are rejected.
Meanwhile, the composition of goods imported from China by India is also changing: the proportion of intermediate goods and capital goods such as electronic components, chemicals, plastics, and automotive parts is increasing, while the proportion of manufactured goods is decreasing.
Indian Minister of State for Commerce and Industry, Gritin Prasad, stated in February this year in the parliament that most of the goods imported from China are capital goods, intermediate goods, and raw materials that are used for domestic production and then re-exported.
In terms of investment policies, India has also sent signals of relaxation. In 2020, India stipulated that investments by companies from neighboring countries had to be approved by the government. In March 2026, the cabinet approved a slight relaxation, allowing companies with Chinese ownership of no more than 10% to enter India through an automatic process. In July, the government further allowed four companies with Chinese ownership or connections to participate in Indian power project bidding processes.
Additionally, to encourage exports, India relaxed restrictions on foreign direct investment in the e-commerce sector on July 23. E-commerce companies were allowed to hold inventory in India, but only for export purposes. At the same time, India issued a notice banning the import of products made through forced labor, which ultimately led to the United States reducing its proposed 12.5% tariffs to 10%.
The report also mentioned that this policy adjustment has caused opposition and criticism from some national economic organizations in India. Ashwani Mahajan, co-organizer of the economic wing of the National Volunteer Corps, called it “regretful” that a large number of anti-dumping requests were rejected. She argued that anti-dumping measures are remedies rather than protectionist measures.
Reports indicate that India's move is aimed at maintaining strategic flexibility in its relations with the United States and China. It also seeks to attract more trade and investment, thereby supporting the development of its manufacturing industry and export growth.
