Archive · 15 Jan 2026
India's Trade and Investment Screening Reforms
India is doing really well in exporting things like smartphones, cars, and renewable energy products.
To keep this going, they need to import parts and technology from other countries, especially China.
The authors say that to grow, India should make it easier for foreign companies to invest in certain areas, but also keep strict rules for important sectors like defense and energy.
They suggest a system where investments are checked based on how risky they are, so that good investments aren't delayed.
This will help create more jobs and make India's economy stronger.
India's smartphone exports reached $25 billion in FY25, with a 55% increase from FY24.
Over 50% of smartphone parts imports come from China, totaling $15 billion in FY25.
India's trade in intermediate and capital goods is crucial for manufacturing exports.
A risk-based investment screening mechanism is proposed to balance openness with national security.
Sectors like electronics, renewables, and energy storage are highlighted for potential job creation and economic growth.
- Who
- Amitabh Kant & Ranveer Nagaich, Fairfax Centre for Free Enterprise
- What
- Discussion on India's trade and investment screening reforms
- When
- FY25 (Fiscal Year 2025)
- Where
- India
- Why
- To balance openness with national security and boost economic growth
- Smartphone exports in FY25
- $25 billion
- Smartphone parts imports in FY25
- $15 billion
- Percentage of smartphone parts from China
- Over 50%
- China's semiconductor imports
- $250-300 billion
- India's per capita income (nominal)
- $2,500
- India's per capita income (PPP)
- $9,000
- Consumption as percentage of GDP
- ~60%