India recalibrates China investment policy with Press Note 3 revision. New Delhi's updated framework balances security concerns with economic growth by allowing Indian firms to access Chinese technology and manufacturing expertise while maintaining domestic control. Chinese FDI in India has remained minimal at 0.034% of total inflows between 2021 and 2024, compared to China's emergence as a leading global investor elsewhere. The revised approach aims to enable technology transfer, enhance domestic value addition, and integrate Indian companies into global value chains without compromising strategic interests. This pragmatic recalibration reflects India's intent to leverage technologically capable partnerships for advanced manufacturing and emerging sectors while protecting national security through structured investment frameworks and government oversight mechanisms.
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