May 25, 2025 1:31 am
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India Unlikely to Lift Ban on Chinese Investments Soon, Says Chief Economic Adviser


February 11, 2025 – India’s Chief Economic Adviser, V. Anantha Nageswaran, announced on Tuesday that the country is not expected to lift the ban on Chinese investments in the near future. Speaking at an event in Mumbai, Nageswaran emphasized the need for both nations to understand their mutual dependence and benefits.

“It requires both sides to understand mutual dependence and benefits,” Nageswaran stated. He further explained that immediate changes to the policy on Chinese investments are unlikely, as “both sides are crossing the river by feeling the stones.”

India has tightened its scrutiny of investments from Chinese companies since 2020, following a deadly clash between Indian and Chinese soldiers at the Himalayan frontier. The incident resulted in the deaths of 20 Indian and four Chinese soldiers.

Nageswaran also highlighted ongoing discussions with China to address the growing trade deficit between the two countries. India is among the top three countries with the largest trade imbalance with China, with a trade deficit ranging from $93 billion to $95 billion.

The Chief Economic Adviser’s remarks underscore the complexities of the economic relationship between the two nuclear giants and the challenges in navigating their trade and investment policies.

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