Sino-Indian trade continues to grow, but Chinese investment in India has sharply declined, and Indian manufacturing development faces multiple challenges.

Foreign Media: In recent years, the scale of China-India trade has continued to expand, with bilateral trade volume growing from $71.5 billion in 2016 to $151.1 billion in 2025-26. However, Chinese investment in India has dropped sharply from $705 million in 2015 to just $6.5 million last year, showing a clear divergence.

Analysts believe that India's economic growth has driven demand for Chinese capital goods and manufacturing products, but restricting Chinese investment actually undermines domestic industrial chain development and exacerbates the trade deficit with China. During China’s rise in manufacturing, foreign investment—especially industrial investment—played a crucial role. If India aims to enhance its manufacturing capabilities, it needs to attract more foreign investment.

Nevertheless, restoring Chinese investment is not the only challenge. Indian manufacturing still faces issues such as inadequate infrastructure, unfavorable regulatory environment, and insufficient industrial support. Currently, foreign investment in India is mainly concentrated in software and services, with a relatively low share in manufacturing investment.

Original article: toutiao.com/article/1875760488171520/

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