A view of the Mumbai Coastal Road project in Mumbai, India, on April 3, 2024.
Noor Photo | Noor Photo | Getty Images
India is likely to ease restrictions on Chinese investment in non-sensitive sectors such as solar panels and battery manufacturing where New Delhi lacks expertise, hampering domestic manufacturing, two government sources said.
One official, who asked not to be named, said the government plans to liberalize sectors it deems less security-sensitive to Chinese investment.
The plans represent a first step toward improving economic ties between the neighbors, which soured after clashes on the remote Himalayan border in 2020, after which India tightened controls on investments from Chinese companies.
“Non-critical sectors will be decided on a case-by-case basis,” the second official said, but restrictions on Chinese investment in electronics and telecommunications will remain.
The Prime Minister's Office and the ministries of foreign affairs, finance, interior and trade did not respond to requests for comment.
Senior government officials have signaled a willingness to review their stance against Chinese investment in recent months as foreign investment has fallen to a 17-year low.
Finance Minister Nirmala Sitharaman's support for better economic ties with China on Tuesday was the first such public comment by a senior minister in Modi's government.
India's chief economic adviser to India Anantha Nageswaran said on Monday that New Delhi could work to boost foreign direct investment from China to boost India's exports.
If the plans are confirmed, they could open the door to billions of dollars in investment from Beijing that India has blocked for the past four years.
India has also banned visas for Chinese nationals since almost 2020, but may ease those restrictions for Chinese technicians as the move has hampered investments.
