Why India may need China
• Supply-chain integration: Chinese FDI can help India plug into global value chains and boost exports.
• Manufacturing scale & components: China’s dominance in intermediate goods means diversification away from China is hard without Chinese firms’ participation.
• Pragmatism over protectionism: Easing curbs can attract capital, technology and scale at a time when global firms are re-aligning supply chains.
Only important data
• China’s contribution to India’s FDI (2000–2021): <1% of total equity inflows.
• Chinese firms’ contract losses post-curbs: $700–750 billion worth of contracts lost.
• FDI curbs introduced: 2020 (mandatory approval for investments from bordering countries).
China’s share in India’s FDI inflows (rank)
• 2021: ~0.43% (rank 20)
• 2022: ~0.02% (rank 47)
• 2023: ~0.10% (rank 34)
• 2024: ~0.01% (rank 58)
• 2025 (Sept): ~0.01% (rank 49)
