Analysis in East Asia Forum: India’s investment reforms keep China at arm’s length

In March 2026, India eased investment restrictions imposed in 2020, allowing some non-controlling investments linked to countries sharing a land border with India to proceed without prior government approval. While the change will benefit some Chinese investors, it is driven more by a desire to unblock global capital than by any strategic opening to China. Enduring political mistrust, trade imbalances and wider geopolitical pressures will continue to limit any deeper economic re-engagement between India and China.

By Manoj Kewalramani

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