Capital idea

Relaxing the PN3 norms will bring in capital from China but more easing is needed

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RESTRICTIONS ON INVESTMENTS into India from countries that share land borders-particularly China-may have been warranted five years ago when relations between the two countries were strained.At the time, tensions on the Indo-China border were high and the pandemic had just struck. It was perhaps necessary to guard against opportunistic purchases of large stakes in Indian companies by Chinese firms. But the global landscape has changed dramatically since then, with the rules-based order giving way to a far more polarised environment.