View of the Mumbai Coastal Highway Project in Mumbai, India on April 3, 2024.
Noor Photos | Noor Photos | Getty Images
India may ease restrictions on Chinese investment in non-sensitive sectors such as solar panel and battery manufacturing, two government sources said, citing a lack of expertise in New Delhi that has hampered domestic manufacturing.
An official who spoke on condition of anonymity said the government plans to open up Chinese investment in industries deemed less sensitive from a security perspective.
The plans mark the first step toward improving economic ties between the two neighbors.
The second official said non-critical industries “will be decided on a case-by-case basis” but restrictions on Chinese investment in electronics and telecommunications will continue.
The prime minister’s office, foreign affairs, finance, home affairs and trade ministries did not respond to requests for comment.
Over the past few months, senior government officials have been willing to reexamine their stance on Chinese investment as foreign investment fell to a 17-year low.
Finance Minister Nirmala Sitharaman support On Tuesday, senior cabinet ministers in Modi’s government made public comments about strengthening economic ties with China for the first time.
on Monday, chief economic adviser V. Anantha Nageswaran said New Delhi can promote foreign direct investment from China to boost India’s exports.
The plans, if confirmed, could unlock billions of dollars worth of investments from Beijing that have been blocked by India over the past four years.
India is almost in lockdown visa It has been open to Chinese citizens since 2020, but restrictions on Chinese technicians may be eased in a move that discourages investment.
