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China to India · Trade and sectors

Trade agreements and sector rules for Chinese investors

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

There is no India–China trade agreement; goods face standard Indian tariffs and trade remedies. Press Note 3 requires prior Government approval for any investment by a Chinese entity or one with a Chinese beneficial owner, and Chinese directors need security clearance. Chinese investors are most active in electronics manufacturing (often with indian partners), renewable energy equipment, automotive and evs.

What is specific to Chinese companies

There is no trade agreement; Chinese goods face standard tariffs and trade remedies.

Sectors

  • Electronics manufacturing (often with Indian partners)
  • Renewable energy equipment
  • Automotive and EVs
  • Consumer appliances

A trade agreement does not change FDI caps, FEMA pricing or RBI reporting.

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How SU and Company helps

We assess whether a GIFT City unit or a mainland company fits the business and set up the chosen entity.

  • IFSC versus mainland comparison
  • Entity incorporation
  • Accounting, tax and compliance after set-up
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Questions

Does a trade agreement change FDI rules?

No. Tariffs and services access change; FDI policy, sector caps and FEMA reporting still apply.

General information as at 5 November 2026, not advice for a particular case. Indian and Chinese rules change often; confirm the current position before acting. Chinese law points should be confirmed with a Chinese adviser.

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