According to The Indian Express, amid ongoing U.S. tariff pressures and improving China-India relations, India is considering relaxing a series of trade, flight and visa restrictions imposed on China since the 2020 border conflict. This policy shift will create new export opportunities for Chinese power equipment manufacturers, particularly for secondary gas insulated switchgear, compact substation transformer and compact unit substation. Key measures include:

1. Removal of Select Tariffs & Non-Tariff Barriers

India plans to eliminate certain import tariffs and trade barriers, significantly reducing costs for Chinese switchgear, power transformers and prefabricated substations to enter the Indian market – enhancing price competitiveness for medium-high voltage equipment.

2. Lifting of Port Restrictions

The blanket ban on Chinese goods at Indian ports is expected to be revoked, enabling smoother customs clearance for distribution cabinets, dry-type transformers and modular substations, reducing cargo delays and logistics expenses.

3. Flight Resumption & Streamlined Visas

Direct China-India flights will resume with simplified visa procedures, facilitating technical exchanges for switchgear installation, Eco-efficient transformers and other technical services.

4. Relaxed Investment Rules

India may ease Chinese investment restrictions, allowing local production/JV opportunities. Chinese firms could establish gas-insulated switchgear (GIS), energy-efficient transformers and smart compact substation manufacturing to bypass tariffs and better serve the market.

Sector Impact

• Switchgear: India's grid modernization drives demand for cost-effective vacuum circuit breaker panels (e.g. VT19 series) below 40.5kV.

• Transformers: Renewable energy projects will boost exports of dry-type and oil-immersed transformers.

• Compact Substations: Modular prefabricated substations are competitive for India's distributed energy/industrial park needs.

Conclusion

India’s trade policy adjustments present tangible opportunities. Chinese power equipment exporters should monitor tariff details and customs processes, prioritizing switchgear, transformers and compact substations while exploring localized production models.