India, March 11 -- The Union Cabinet on Tuesday decided to revoke a 2020 order - Press Note 3 (PN3) - that banned foreign investment from countries with which India shares a land border. The decision followed hostilities with Chinese armed forces in Galwan Valley after which India announced several steps to disallow Chinese companies from doing business in India. The latest order will now allow Chinese capital - subject to some limits such as controlling stakes - to resume investment in India. Habitual or opportunistic hawks will scoff at the decision, but it should be seen as a pragmatic detente with the world's second-largest economy and by far its largest manufacturing powerhouse.

If India is to make progress in manufacturing, it cann...