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Welcoming the dragon
Business Standard
|July 23, 2025
India can gain from easing restraints on Chinese FDI
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The NITI Aayog's recommendation that Chinese entities be allowed to acquire up to 24 per cent in Indian companies without the need for additional security clearance could be a great leap forward in institutional thinking on the subject. It builds on a tentative suggestion in the Economic Survey of 2023-24 for a calibrated easing of restrictions on Chinese foreign direct investment (FDI) to boost India's integration into global supply chains and increase exports.
The government think tank's recommendations are not always accepted by the policy establishment, but this one assumes significance since it coincides with External Affairs Minister S Jaishankar's first visit to China in five years to discuss economic cooperation and de-escalation of military operations along the Line of Actual Control.
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