NITI Aayog panel suggests rolling back China FDI restrictions: Report

The report highlights that greater Chinese investment could support India's integration into global value chains and strengthen export prospects

A high-level committee led by NITI Aayog member Rajiv Gauba has advised the government to either remove existing restrictions on Chinese investments or adopt a calibrated easing of the curbs, Business Standard reported, citing people familiar with the discussions.

The publication noted that the committee's internal report, completed in October, recommended that the Department for Promotion of Industry and Internal Trade (DPIIT) evaluate the available options and reach a final decision by December 31.

The move could potentially reshape India's policy approach toward investments from China, with the report highlighting that greater Chinese investment could support India's integration into global value chains and strengthen export prospects.

Business Standard said the high-level committee on non-financial regulatory reforms proposed two pathways. One involves withdrawing "Press Note 3," which currently restricts foreign direct investment (FDI) from countries sharing a land border with India, including China.

The other option would allow investments where the beneficial ownership is below a specified threshold, a person cited in the report told the publication. The newspaper added that the NITI Aayog did not respond to its queries on the recommendations.