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It’s time for India to welcome FDI from China
As relations thaw, and with both countries facing external and domestic headwinds, expanding investment links would be a win-win.
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India needs to create at least 10 million jobs every year for new entrants into its workforce.
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At the end of August, India’s Prime Minister Narendra Modi will visit China for the first time in seven years, to attend the summit of the Shanghai Cooperation Organisation. It will be an opportunity to signal India’s willingness to upgrade its economic relationship with China, starting with re-welcoming Chinese foreign direct investment (FDI).
After almost five years of all but shunning China’s involvement in India’s economy in areas other than trade following a bloody border skirmish in 2020, this would be a radical step. But the upending of trade arrangements with the US, which affects both China and India, as well as the other economic headwinds that they face make it timely and potentially win-win.
