India Mulls Relaxing Chinese Investment Curbs in Solar and Battery Sectors

New Delhi, Jul 25 (KNN) In a significant shift fr0m its 2020 policy, India is contemplating relaxing restrictions on Chinese investments in specific non-sensitive sectors, according to sources within the government.

This move comes as New Delhi seeks to bolster domestic manufacturing capabilities in areas where it currently lacks expertise.

The potential policy adjustment primarily targets sectors such as solar panels and battery manufacturing, which are crucial for India's renewable energy ambitions and electric vehicle industry.

By allowing Chinese investment in these areas, India aims to bridge technological gaps and accelerate its manufacturing prowess.

This development marks a cautious step towards mending economic ties between the two Asian giants, which have been strained since the 2020 border clashes in the Himalayan region.

Following those tensions, India had implemented stringent measures to scrutinise investments fr0m Chinese companies, citing national security concerns.

However, it's important to note that the proposed easing of restrictions is selective. Strategic sectors such as electronics and telecommunications are expected to remain under strict government scrutiny, underlining India's continued cautious approach towards Chinese investments in sensitive areas.

The move reflects a delicate balancing act by the Indian government - addressing domestic industrial needs while maintaining strategic safeguards. It also signals a pragmatic recognition of China's technological expertise in certain manufacturing sectors.

As of now, official spokespersons fr0m key ministries, including the Prime Minister's Office, Foreign Affairs, Finance, Home, and Trade, have not provided comments on this potential policy shift.

The lack of official confirmation suggests that the proposal is still under consideration and may be subject to further deliberations.

This evolving situation will be closely watched by international investors and policy analysts, as it could have significant implications for Indo-Chinese economic relations and the broader geopolitical landscape in Asia.

(KNN Bureau)