According to the notes 3 (PN3) from 2020, investments from countries share the boundaries of land with India, the approval of the new Delhi. Increased control was largely focused on China to limit opportunistic takeover and acquisitions of Indian companies due to the Covid-19 pandemia.
The Ministry of Trade has begun discussions with the parties to determine whether companies with a small percentage of the Chinese share should be considered as Chinese society, ”said people who have been quoted earlier, said the Mint, talking about anonymity.
“A suitable definition of companies belonging to border sharing countries would bring clarity and certainty for Indian companies looking for investments from Chinese companies,” said Sundeep Nayak, former CEO of the National Productivity Council.
“At present, the ambiguity around what qualifies as a Chinese company creates a hesitation for investors and domestic companies,” Nayak said. “A well -defined framework not only makes approval, but also ensures that real investments in nonsense sectors are not detained.”
India’s softer attitude towards Chinese investments is signaled by a pragmatic shift aimed at ensuring new economic opportunities to increase external pressures. US President Donald Trump has deposited 50% of tariffs on Indian goods, the highest worldwide, including 25% of the punishment for buying Russian oil. The first set of duties came into force on August 7 and another 25% of August 27. This helped to bring China and India closer, while Prime Minister Narendra Modi was visited by Tianjin at the Summit of the Organization for Cooperation in Shanghai.
Questions by e -mail on Wednesday by e -mail a spokesperson of a business ministry, external items and the Chinese embassy in Nový Delhi remained unanswered.
“Can’t ignore China”
“It is the fact that China produces nearly 90% of investment goods and the world cannot ignore China. They have been invested over more than what the world needs and develops interdependence. We also need their technology,” one of the three people said.
“A subsidiary or a step-by-step company of main Chinese companies that only have a very small share in Indian sub-yako is 0.1% or slightly higher-not necessarily under the guidance of the limitation for Chinese companies,” this person said.
According to the previously cited other person: “The Indian government leads the discussion with stakeholders to allow such investments without considering these companies as Chinese companies. It has also been proposed that the minimum threshold value of the share that the investment can be allowed without further control.”
“The meeting in this respect occurred last week and several other meetings are planned in the coming days,” the third party said.
Offer on the coast of FDI
Previously, Mint reported on August 30 that India was planning to alleviate COVID curbs to Chinese direct foreign investment (FDI), allowing 20-25% of investment in production, renewable energy and automatic components through an automatic route while maintaining a strategic industry outside the limits.
India is also trying to create an ecosystem more suitable for an industry that will increase direct foreign investments to $ 100 billion out of approximately $ 80 billion. Currently, in most sectors, 100% FDI is allowed under the automatic way, except for several strategically important, such as defense and atomic energy.
“50% American tariff on Indian exports is a serious failure for industry -intensive industry, such as textiles, clothing, leather and technical goods,” said Vinod Kumar, President of India forum for small and medium -sized enterprises. “To face this, India will have to attract larger investment flows that can increase production, create better job opportunities, and make Indian goods more competitive in global markets.”
India continued to publish tourist visas to Chinese nationals after a five -year gap. The new Delhi is also preparing to restart direct flights to Beijing and restore the connectivity of air that remained suspended from the Covid-19 pandemia.
Trade grew despite curbs
While India has limited Chinese investment, trade continued to grow when India relies on his neighbor to import pharmaceutical raw materials into electronic parts.
Indian imports from China increased from $ 94.57 billion in the years 2021-22 to $ 113.45 billion in FY25, while exports to China fell from $ 21.26 billion to $ 14.25 billion, data about the Ministry of Commercial Ministry showed.
Incoming consignments from China during April – July 2025 amounted to $ 40.66 billion, which is 13.1% compared to the previous year. Exports to China over the period jumped by 20% to $ 5.76 billion.
Overall, India attracted FDI worth $ 81.04 billion in FY25, which is 14% compared to the previous year, data from the Ministry of Commerce. The service sector proved to be the best recipient of the FDI capital, which represents 19% of the total, with an investment rising almost 41% to $ 9.35 billion in FY25.
However, according to data shared by Foreign Minister for Financing Panka Chaudhary in Lok Sabha, March 10 in response to the question, the influx of direct foreign investments in India reached $ 84.83 billion. The FDI slipped to $ 71.35 billion in FY23 and $ 71.27 billion in FY24, in the middle of concerns about potential global recession, economic crisis caused geopolitical conflicts and growing protectionist measures worldwide.
(Tagstotranslate) India Relationships in China
