Business

India-China Economic Reset: FDI, Trade & Manufacturing 2026

India's 2026 economic reset with China is a selective easing of investment restrictions, not a full normalization of economic ties. Non-controlling investment…

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PRESS NOTE 3

India Requires Approval for Land-Border FDI

On April 17, 2020, DPIIT issued Press Note 3, requiring government approval for FDI from any country sharing a land border with India, citing the risk of opportunistic t…

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GALWAN CLASH

Border Clash Hardens Economic Security Posture

On June 15, 2020, Indian and Chinese soldiers clashed in the Galwan Valley; 20 Indian and at least 4 Chinese soldiers were killed. It hardened political backing for rest…

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APP BANS

India Blocks Chinese Mobile Apps in Multiple Rounds

59 apps banned June 29, 2020, including TikTok; 118 more banned September 2, 2020, including PUBG Mobile; further rounds followed. Extended India's economic-security per…

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PLI & CHINA+1

India Pushes Manufacturing Without Chinese Capital

Production Linked Incentive schemes across electronics, mobiles, pharma and solar attracted China+1 diversification. India grew as an assembly base but stayed dependent…

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LIMITS OF DECOUPLING

Sector-Specific China Dependence Persists

Electronics, solar (roughly 90% of polysilicon) and pharmaceuticals (65%+ of APIs) showed acute, sector-specific dependence on Chinese inputs despite manufacturing growt…

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PRESS NOTE 2 (2026)

Cabinet Approves FDI Amendment for Land-Border Countries

On March 10, 2026, the Cabinet approved a 10% non-controlling automatic-route threshold and a 60-day approval window for specified manufacturing sectors, notified as Pre…

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29 PROPOSALS

Revised Framework Reports Rs 4,895.65 Crore in Proposals

As of August 20, 2026, 29 FDI proposals worth Rs 4,895.65 crore (~$511.5M) were reported, from entities in Mauritius, the US, South Korea, Japan, Singapore, Luxembourg a…

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WHAT'S NEXT

A Calibrated Opening, Not a Full Reset

India's challenge is no longer simply whether to do business with China, but where economic interdependence remains useful and where strategic dependence is too risky —…

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