India is not expected to lift a ban on Chinese investments into the country soon, according to remarks by India’s Chief Economic Adviser V. Anantha Nageswaran on Tuesday.
“It requires both sides to understand mutual dependence and benefits,” he said at an event in Mumbai.
“I don’t think it is something that you’ll expect to see immediate results because both the sides are crossing the river by feeling the stones,” he said, when asked about whether India is considering making any changes to its policy on Chinese investments.
India has tightened its scrutiny of investments from Chinese companies since 2020, as relations between the two nuclear giants have soured after clashes between their soldiers on their largely undemarcated Himalayan frontier left 20 Indian and four Chinese soldiers dead in June 2020.
Nageswaran said that India has triggered a conversation with China to discuss the growing trade deficit between the two countries.
India is among the top three countries with the largest trade imbalance with China, with a trade deficit of $93 billion to $95 billion, he said.