The Indian government is facing pressure to ease investment restrictions on Chinese companies, but it remains unlikely to do so due to concerns about their opaque ownership structures and connections to the Chinese military. Private sector entities have appealed for a relaxation of these rules, but the government is maintaining its vigilance in light of China’s non-market economy practices and their potential impact on India’s manufacturing sector. The government’s reluctance to relax these restrictions underscores the tensions between the two Asian giants and the complexities of their economic relationship. As India seeks to protect its own strategic interests and domestic industries, the issue of Chinese investment continues to be a sensitive and contentious one.