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Why India should selectively reopen door to investment from China

cGiven modern financial engineering, this effort is not absolutely straightforward, but it is one that many major economies are undertaking in an age of increasing geoeconomic contestation

India-China trade, trade, India China
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The exact process by which the committee arrived at this 10 per cent threshold is unclear. (Photo: Shutterstock)

Business Standard Editorial Comment

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Due to a combination of factors — shifts in the geopolitical environment, relative tranquillity on the border, and India’s own economic requirements — there has been increased discussion in recent months on re-evaluating the country’s relationship with China, particularly when it comes to trade and investment. The foundational assumption that it would be dangerous to allow Beijing control of core infrastructure or access to sensitive systems and sectors is not being questioned. Yet, the steps taken by New Delhi in the post-Galwan period to sever economic ties with the Chinese mainland should be re-examined in the light of