A view of the Mumbai Coastal Road project is seen in Mumbai, India, on April 3, 2024.
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India may ease restrictions on Chinese investment in non-sensitive sectors like solar panel and battery manufacturing where New Delhi lacks expertise and hinder domestic manufacturing, two government sources said.
The government plans to free up sectors for Chinese investment that it considers less sensitive from a security point of view, said one official, who did not want to be named.
The plan marks the first step in improving economic ties between the two neighbours, ties that have soured following clashes on the remote Himalayan border in 2020, after India tightened controls on investment from Chinese companies.
Non-critical sectors “will be decided on a case-by-case basis,” the second official said, but curbs on Chinese investment in electronics and telecommunications will continue.
The offices of the prime minister, foreign affairs, finance, housing and trade did not respond to requests for comment
Top government officials have opened up to a review of their stance on 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 public comment made by a ranking cabinet minister in the Modi government.
On Monday, Chief Economic Adviser V. Anantha Nageswaran said New Delhi could promote foreign direct investment from China to boost India’s exports.
The plan, if confirmed, could unlock billions of dollars worth of investment from Beijing that has been blocked by India for the past four years.
India is also on the verge of blocking visas for Chinese nationals from 2020, but may ease the ban for Chinese technicians as the move discourages investment.
