India is not expected to lift its ban on Chinese investments anytime soon, according to Chief Economic Adviser V Anantha Nageswaran. Speaking at an event in Mumbai, he emphasized that both countries must recognize their mutual dependence before any policy shifts can happen. India has tightened scrutiny of Chinese investments since 2020, following a deadly border clash in the Himalayas that left 20 Indian and 4 Chinese soldiers dead. With tensions still running high, lifting restrictions on Chinese companies remains a distant possibility. Adding to the economic strain is India’s massive trade deficit with China, which currently stands at $93-95 billion—one of the largest trade imbalances globally. While India has initiated discussions with China to address this growing gap, concrete solutions remain unclear.
