Ahead of Modi-Xi meet, India to relax Chinese investment curbs
India is planning to relax curbs on Chinese investments in non-sensitive sectors like manufacturing, renewable energy, and auto parts—allowing up to 20-25% investment through automatic approval.
This update comes just before PM Modi meets President Xi Jinping at the Shanghai Cooperation Organisation summit in Tianjin.
India's move to boost FDI amid US tariff challenges
This move is India's way of adapting after new US tariffs hit exports like textiles and leather in August 2024.
By opening doors to more Chinese capital, India hopes to boost jobs, tech, and its $100 billion FDI goal—while still keeping sensitive areas like defense off-limits.
Even with political tensions, trade between India and China has grown from $94.57 billion in 2021-22 to $113.45 billion in FY25, showing how economic ties remain strong despite the headlines.