India has authorized four Chinese power equipment manufacturers with local production facilities to bid for government projects, marking a significant easing of trade restrictions amid cooling border tensions.
The move, confirmed by Reuters, allows these firms to participate in state tenders for a two-year period, reversing a broader exclusion policy that had shielded domestic competitors from Chinese market entry.
5% in the session. Investors are repricing the competitive landscape, anticipating that the re-entry of Chinese firms will compress margins and market share for local players in the power infrastructure sector.
The policy shift triggered an immediate negative reaction in Indian equity markets.
Shares of major domestic capital goods manufacturers faced intense selling pressure, with names including GE Vernova T&D India, Hitachi Energy India, and Siemens Energy India dropping as much as 10.5% in the session.
Investors are repricing the competitive landscape, anticipating that the re-entry of Chinese firms will compress margins and market share for local players in the power infrastructure sector.
This development represents a tangible step toward normalizing economic ties between New Delhi and Beijing, following a period of heightened geopolitical friction.