The Indian government remains firm on its stance to maintain investment restrictions on Chinese companies, citing concerns over their opaque ownership structures and connections to the Chinese military. Despite calls from the private sector for a relaxation of these restrictions, the government is steadfast in its vigilance, particularly in light of China’s non-market economy practices and their potential impact on India’s manufacturing sector. This cautious approach underscores the government’s commitment to safeguarding national interests and ensuring transparency in foreign investments. The ongoing tensions between India and China have further fueled the government’s reluctance to ease investment restrictions, as it seeks to protect domestic industries and prevent any undue influence from foreign entities. The decision to maintain these restrictions reflects the government’s efforts to strike a balance between fostering economic growth and safeguarding national security interests. In the current geopolitical climate, where tensions between India and China remain high, the government’s cautious approach towards Chinese investments is likely to continue.