Reference News Network, March 13 report: According to the US Consumer News and Business Channel website, on March 11, India is easing regulations to allow Chinese investment into its own country, showing that the Indian government is trying to restart economic relations with China. This follows nearly six years of friction between the two countries.
The Indian government announced on the 10th that the Indian Cabinet had approved amendments to its foreign direct investment policy, allowing manufacturing sectors such as electronic components and solar cells to accept investments from "landlocked neighboring countries".
Although India borders China, Pakistan, Nepal, Bhutan, Bangladesh, and Myanmar, the restrictions mainly aim to limit investments from China.
The statement said that according to India's new regulations, Chinese investors' investments in Indian companies would be processed more quickly and completed within 60 days, provided that the company's ownership is still held by Indian shareholders.
The regulation also allows Chinese companies to acquire up to 10% of shares in Indian companies without seeking approval from the Indian government.
Alpit Chaturvedi, South Asia consultant at Tenet Group, said: "Allowing limited participation of Chinese enterprises in India's manufacturing ecosystem may make it easier for (multinational) companies to move final assembly operations to India while maintaining the Chinese investment channel."
He also said that this will enhance the appeal of the "China + 1" strategy for multinational companies in India, which are seeking to diversify their supply chains.
Previously, Chinese enterprises' investments in India have been hindered by security reviews from relevant Indian authorities.
India hopes that these changes in measures will improve the business environment and attract more investment, used for investing in start-ups and deep tech companies.
Lima Bhattacharya, head of Verisk Maplecroft Consulting, said: "I think this is a pragmatic adjustment rather than a structural reset of India-China relations."
The report stated that, however, due to the broader geopolitical competition between the two countries still existing, some experts are skeptical about the impact of New Delhi's regulatory changes on investment. Bhattacharya said: "I don't expect a large influx of Chinese capital into India."
Bhattacharya said that although the policy has already sent a signal of relaxation, Chinese enterprises will still take risks into account when making decisions. She said: "In the context of both countries facing a more fragmented global order, the policy of relaxing regulations reflects an economic pragmatism." (Translated by Hu Xue)
Photo taken in Mumbai, India on August 24, 2025, of the Bandra-Worli Sea Link (Xinhua News Agency)
Original source: toutiao.com/article/7616567169630880283/
Statement: The article represents the views of the author alone.