Shares of major power equipment companies, including Hitachi Energy India and GE Vernova T&D India, witnessed significant declines on Friday. Hitachi Energy India shares fell nearly 8% to Rs 31,150, while GE Vernova T&D India shares dropped around 10% to Rs 4,361.
The downturn in stock prices coincides with the Indian government's decision to grant exemptions to four Chinese companies, allowing them to supply electrical equipment and participate in government tenders for two years. The companies include TBEA Energy, Nanjing Electric India, New Northeast Electric India, and Taikai Electric (India). This move, outlined in a Ministry of Finance order dated June 24, marks a shift in policy following the 2020 border clash between India and China.
Previously, Chinese bidders were required to register with a government panel and obtain political and security clearances to compete for state contracts. However, the recent policy change allows state-run entities to procure certain power-transmission components from China without prior government approval.
This development comes amid evolving India-China trade relations. China has surpassed the US to become India's largest trading partner in 2025-26, with bilateral trade reaching $151.1 billion. Despite the increase in exports to China by 36.66% to $19.47 billion, India's trade deficit with China widened to an all-time high of $112.16 billion.
Background
The easing of restrictions on Chinese imports could signal a shift in India's approach to balancing its economic and strategic interests. Market participants will be closely watching how this policy change impacts the domestic power equipment sector and broader trade dynamics.
The easing of restrictions on Chinese imports could signal a shift in India's approach to balancing its economic and strategic interests. Market participants will be closely watching how this policy change impacts the domestic power equipment sector and broader trade dynamics.
