NITI Aayog suggests Chinese firms be allowed up to 24% stake without extra clearance—signalling a shift in policy thinking
The proposal aligns with calls for easing Chinese FDI to deepen supply chain integration and boost exports
Since 2020, Chinese FDI faced curbs after border tensions. But 14 Apple suppliers from China have recently received approval
Despite being the world's No. 2 economy, China made up <1% of India’s FDI from 2000 to 2024—while India posted a $99.2 bn trade deficit
Allowing 24% stake offers influence without control. Strategic safeguards and tech transfer conditions can protect India’s interests
To stay competitive in the China+1 race, India must balance caution with opportunity—and use FDI to build long-term tech capacity