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West Asia War Forces India’s Strategic Reset As Govt Opens Door To Chinese Investments

West Asia War Forces India’s Strategic Reset As Govt Opens Door To Chinese Investments

Business Today
Business Today
  • New Delhi,
  • Mar 12, 2026,
  • Updated Mar 12, 2026, 2:44 PM IST

The escalating war in West Asia appears to be pushing New Delhi toward a strategic rethink. In a significant shift, the Narendra Modi government has allowed Chinese investments in sectors such as electronics, capital goods and solar energy. Chinese firms will also be permitted to acquire up to a 10% stake in Indian companies without requiring prior government approval marking a major policy change after restrictions imposed following the 2020 Galwan clash. At the same time, India is actively engaging global powers amid the growing crisis. External Affairs Minister S. Jaishankar has spoken with Russian Foreign Minister Sergey Lavrov, while New Delhi is also maintaining regular contact with Iranian leadership. With millions of Indians living in the Gulf and a large share of energy imports passing through the region, the conflict poses serious risks to India’s economy and energy security.

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