India considers reviewing FDI restrictions on China for manufacturing and supply chain benefits.

India is considering a potential review of Foreign Direct Investment (FDI) restrictions imposed on China as part of a broader FDI policy review. While India introduced restrictions in 2020, recent surveys suggest that partnering with China could help increase manufacturing and boost supply chain in the country. The government is seeking to reduce import dependence on China and align manufacturing with Chinese investment to benefit from the "China+1" strategy. Despite security concerns, there are strong arguments in favor of Chinese investment in India, as it can help reduce imports, boost supply chain, and leverage advanced technology.

August 14, 2024
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