India, May 29 -- India needs more capital flows now more than ever. Foreign Direct Investment (FDI) is an important component of this imperative. Can being more liberal towards Chinese FDI solve this challenge? India's partial easing of Press Note 3 (PN3) regulations earlier this year has reopened this debate. Is Chinese capital a risk to be kept out, or a tool that can reduce dependence on Chinese goods and kill two birds with the same stone: higher capital flows and lower trade deficit? Here is what the data shows.

Published by HT Digital Content Services with permission from Hindustan Times....