To match China’s economy, India must accept its investment

Border rivalries shouldn’t block Chinese capital, just as wartime history never stopped Japanese investment from powering East Asia The two trends are related. Fuelled by its growing economy, India buys more from China, particularly capital goods. These expanding imports are driven by a lack of domestic alternatives which could have been established by Chinese investments. Restricting Chinese investments has only exacerbated the growing trade deficit with China. The pathway towards greater economic sovereignty for India lies not with restricting but expanding foreign direct investment from China. After all, FDI is how China became the manufacturing powerhouse it is today.

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