India plans to ease Chinese investment curbs in its electronics sector to boost domestic manufacturing. The move allows up to 24% Chinese ownership without security checks. Officials stress the process will be gradual and politically cautious.
India is signaling a strategic shift by considering the easing of investment restrictions on Chinese firms in the electronics sector. This move comes as New Delhi recognizes the critical role of China’s electronics ecosystem in building a competitive domestic manufacturing base.
Officials propose allowing Chinese companies to hold up to 24% in Indian ventures without security clearance. The initiative is aimed at accelerating India’s hardware production ambitions under schemes like “Make in India” and countering supply chain vulnerabilities.
Finance Minister Nirmala Sitharaman emphasized that economic engagement with China must proceed cautiously, given the political sensitivities. The thaw follows a diplomatic revival marked by high-level visits after years of border tensions and trade freezes.