Eased FDI norms with China to help capital inflows and reduce trade deficit: Experts
Автор: PTI News
Загружено: 2026-03-13
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Several experts have welcomed the government’s decision to ease Foreign Direct Investment (FDI) norms for China and other countries that share land borders with India. The policy allows overseas firms with up to 10% shareholding from these nations to invest in India under the automatic route without mandatory approval. Economists say the move could boost capital inflows and strengthen supply-chain integration at a time when India’s growing economy requires additional investment. Analysts also believe the change relaxes provisions introduced during the pandemic under Press Note 3 to prevent opportunistic takeovers of Indian companies. However, some experts remain cautious about expectations of large-scale technology transfer from China. They say the step could still help improve investment flows and potentially narrow India’s large trade deficit with China.
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