Modi government unlikely to lift ban on Chinese investments
What's the story
India's Chief Economic Adviser V. Anantha Nageswaran has said that the country isn't looking to lift its ban on Chinese investments anytime soon. Speaking at an event in Mumbai, he said that both nations need to have mutual understanding and benefits. Nageswaran also said that any change in this policy wouldn't yield immediate results as both sides are still negotiating.
Investment restrictions
India's tightened scrutiny on Chinese investments
India has been keeping a close eye on investments from Chinese companies since 2020, when ties between the two countries soured. This was after border clashes in the Himalayan region led to casualties on both sides. Nageswaran also revealed that India has started talks with China to address the increasing trade deficit between them.
Trade imbalance
India's trade deficit with China
India is one of the top three countries with the largest trade deficit with China, Nageswaran said. The trade deficit is estimated to be between $93 billion and $95 billion. These numbers highlight the economic difficulties that India faces in its relationship with China, making it even more difficult to lift investment restrictions anytime soon.