In Focus by The Hindu In Focus-Parley | Will removing curbs on Chinese FDI help India?
Jan 29, 2026
Santosh Pai, legal and economic expert on FDI screening. Shyam Saran, former foreign secretary with deep strategic insight. They debate whether easing Chinese investment curbs could boost manufacturing, integrate supply chains, and spur exports. They weigh national security, sectoral red lines, and what India must fix to attract sustainable Chinese investment.
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Chapters
Transcript
Episode notes
Set Clear National Priorities First
- Formulate clear national economic and security objectives before inviting Chinese FDI.
- Align FDI policy to those priorities so investments further India's industrial and strategic goals.
Dual Economic And Security Gains
- Chinese FDI can boost manufacturing, supply-chain share, and exports if targeted correctly.
- It can also be used strategically to reduce import dependency and gain leverage vis-à-vis China.
Screen Sensitive Sectors Carefully
- Develop a sectoral screening approach to bar foreign investment from security-sensitive areas.
- Prefer nationality-neutral restrictions for sensitive sectors rather than China-specific bans.