Centre mulls lifting restrictions on selected Chinese firms: Report

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North News

Chandigarh, July 25

The Indian government is considering easing investment restrictions on certain Chinese firms, especially in high-tech sectors like solar modules and critical minerals. According to The Hindustan Times, this potential policy shift aims to enhance domestic manufacturing capabilities. According to an unnamed official as quoted by the news outlet, discussions are ongoing within the Ministry of Commerce and Industry and other security-related departments, although no final decision has been made.

Relations between India and China have been strained since the 2020 border clash, resulting in stringent rules on Chinese businesses, app bans, and slowed visa approvals. Indian manufacturers claim these restrictions have hampered operations and hindered India’s goal to become a manufacturing hub. Reuters previously reported that India might relax some of these restrictions, The Hindustan reported.

The recent Economic Survey, released by the chief economic adviser, supports attracting more Chinese investment to boost manufacturing. The survey suggests that focusing on foreign direct investment from China could help increase India’s exports to the US, emulating the strategies of past East Asian economies.