India-China economic relations

FOREIGN DIRECT INVESTMENT (FDI): UNION CABINET ALLOW CHINESE INVESTMENTS

India amended the FDI policy under Press Note 3 (2020), defining “beneficial ownership” as per PMLA Rules, allowing up to 10% non-controlling investments via the automatic route, and introducing a 60-day fast-track approval for key manufacturing sectors to balance national security with economic growth and support Make in India.

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To Compete With China, India May Need China: The Strategic Paradox

Despite border tensions, India’s trade deficit with China exceeds $116.2 billion in 2025, creating strategic risks across key sectors. Rather than full decoupling, India needs pragmatic de-risking by building domestic capacity in critical areas, using PLI reforms, global partnerships, and selective engagement to safeguard strategic autonomy.

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India-China economic relations

FOREIGN DIRECT INVESTMENT (FDI): UNION CABINET ALLOW CHINESE INVESTMENTS

To Compete With China, India May Need China: The Strategic Paradox

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