Why is India reconsidering now?
Nearly four years later, policymakers are weighing whether the curbs need a reset. Officials argue that while the policy succeeded in preventing hostile acquisitions, it has also slowed the inflow of Chinese capital into key sectors such as technology, manufacturing, and start-ups.
The debate also comes at a time when India–China relations show early signs of normalisation. After Prime Minister Narendra Modi’s recent visit to China for the Shanghai Cooperation Organisation (SCO) summit, both sides pledged to move forward. In his meeting with Chinese President Xi Jinping on the sidelines of the summit, the two leaders agreed to work towards a “fair, reasonable and mutually acceptable” solution to the border issue, while also committing to expand trade and investment ties.
If Press Note 3 is revisited, it could become one of the most visible signals of thawing relations between the two Asian giants, whose ties had sharply deteriorated five years ago following clashes between troops along the Line of Actual Control (LAC) in Ladakh valley.