The Indian government is facing pressure to reconsider investment restrictions on Chinese companies, but concerns over opaque ownership and ties to the Chinese military are likely to keep the restrictions in place. The government remains vigilant due to China’s non-market economy practices and their potential impact on India’s manufacturing sector. Calls from the private sector to relax these restrictions are being met with caution as the government prioritizes national security and economic interests. The ongoing border tensions between the two countries have also contributed to the government’s reluctance to ease investment rules for Chinese companies. As India aims to boost its domestic manufacturing capabilities and reduce dependency on Chinese imports, the government is treading carefully when it comes to allowing Chinese investments in key sectors. The decision to maintain strict controls on Chinese investments reflects India’s strategic approach to safeguarding its economic and national security interests amid growing geopolitical uncertainties.