Indian government maintains strict investment restrictions on Chinese companies over military ties and opaque ownership, despite private sector appeals.

The Indian government is standing firm on its decision not to ease investment restrictions on Chinese companies, citing worries about their unclear ownership structures and connections to the Chinese military. Calls from the private sector for a relaxation of these restrictions have so far been unsuccessful, as the government remains cautious due to concerns about China’s non-market economy practices and how they could affect India’s manufacturing goals. The decision reflects the government’s commitment to safeguarding national security and promoting domestic industries.

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