India’s stance on Chinese investment is shifting as geopolitical conditions evolve and domestic economic needs demand a more calibrated approach
A committee led by Rajiv Gauba is reassessing current restrictions, examining whether disengagement still aligns with India’s long-term strategic and economic interests
Withdrawing Press Note 3 would allow India to rebuild its economic security framework from the ground up, reflecting today’s realities rather than post-2020 urgency
Allowing investment automatically when Chinese ownership stays below 10% offers a middle path, though it hinges on clear regulatory definitions and careful oversight
Total exclusion of Chinese capital is untenable for a rising economy. India must seek investment that supports growth without exposing critical sectors to undue influence
Defining strategic sectors, setting ownership thresholds, and enforcing transparency can ensure safeguards while enabling engagement where it serves national interest
Revising Press Note 3 is central to reframing ties with China, opening space for beneficial investment while preserving India’s autonomy and economic security