Increasing foreign direct investment (FDI) from China in the domestic market may benefit in the short-term but it risks undermining India’s long-term economic security and strategic autonomy. Chinese firms investing in India may prioritise their own supply chain efficiencies, potentially sidelining local industries and reducing opportunities for home-grown companies to thrive. The Global Trade Research Initiative (GTRI) said that dependence on Chinese firms for key manufacturing capabilities could also expose India to supply chain vulnerabilities and geopolitical risks. Is Chinese investment in India a good idea ?
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