The Indian government is showing no signs of easing investment restrictions on Chinese companies amidst concerns regarding their undisclosed ownership structures and connections to the Chinese military. Despite calls from the private sector for a more relaxed approach, the government remains cautious, particularly due to China’s non-market economy practices which could potentially hinder India’s manufacturing goals. The stringent stance is a reflection of the rising tensions between the two nations and the Indian government’s commitment to safeguarding national security interests. With mounting concerns over data security and strategic vulnerabilities, the government is unlikely to make any concessions in the near future. This cautious approach is in line with the global trend of countries scrutinizing Chinese investments amid geopolitical tensions and increasing competition in the technology and manufacturing sectors. The Indian government’s firm stance on this issue underscores its commitment to protecting domestic industries and ensuring transparency in foreign investments. As the geopolitical landscape continues to evolve, it is clear that India is prioritizing national security and economic interests in its decision-making processes.