India Shuts Doors On Chinese Money – What Message Is Modi Sending To Beijing?
Officials with direct knowledge of the matter say there is no plan to review or revoke Press Note 3, the regulatory gate that keeps Chinese money out of India's strategic sectors.
Introduced in April 2020, the note was born in a moment of national anxiety (COVID 19 pandemic) before the deadly clash in Galwan. It mandates that any investment from countries sharing a land border with India must pass through layers of government scrutiny. The policy does not name China. But it does not need to.
The signal is India wants trade and growth, but not at the cost of its sovereignty. Not when questions of trust still linger across the Himalayas.
'There has not even been internal discussion so far about easing Press Note 3. This is not the time for that. The security environment has not changed enough,' said an official.
Finance Minister Nirmala Sitharaman has acknowledged the potential for economic engagement. Speaking at a forum, she recently said India and China should talk and share more.'
But she added a caveat: 'With caution.'
That word caution hangs heavy over every boardroom pitch that originates in Beijing or Shenzhen. It is not paranoia. It is memory.
The Galwan Valley changed the mood in New Delhi. It made national security a defence as well as economic issue. The government does not want Indian companies to quietly pass into Chinese hands. It does not want Trojan horses built out of equity deals.
Press Note 3 now functions as a firewall. It was initially drafted to prevent opportunistic takeovers during COVID-19. Today, it stands as a symbol of India's geopolitical posture.
Still, India is not closing the door entirely.
There is interest in joint ventures. Electronics manufacturing remains a hopeful space. But even here, the guardrails stay up. Beijing's ambitions, officials say, stretch beyond balance sheets. And until India is sure it will not get blindsided, that door will not open fully.
Any decision to dilute the restrictions will carry strategic weight. It would ripple across sectors like telecom, fintech and critical infrastructure. The consequences, economic and political, would be irreversible.
For now, visas may be easier. Meetings may happen. The tone may soften. But when it comes to money, especially Chinese money, India is still watching and not welcoming.
The message to Beijing is show restraint, sincerity and maybe someday, the locks will click open. But not now.
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