In two minds on China: Policymakers split over attracting Chinese FDI

Following the Galwan clash between the two countries' forces in 2020, India imposed restrictions on investments from countries it shares a land border with to curb opportunistic takeovers

When the FY24 Economic Survey presented in July batted for allowing more Chinese investment into India, it was seen as a change in heart following the NDA government’s re-election for a third successive term. However, with trade minister Piyush Goyal quickly clarifying that there was no rethink within the government to support foreign direct investment (FDI) from China, matters died down. 

 

However, in recent months, India’s fast-tracking of business visas for Chinese nationals, troop disengagement along the Ladakh border, and statements by senior government functionaries have indicated a renewed deliberation on the future of India’s economic ties with its northern