Mumbai, India - Neelkanth Mishra, Chief Economist at Axis Bank and a member of India's Economic Advisory Council to the Prime Minister, has advocated for increased investment from China.

Drawing parallels with Japan's economic boom in the 1980s, Mishra argued that China, facing low government bond yields and negative foreign direct investment, will soon be seeking to invest heavily abroad. He likened the current situation to Japan's period of aggressive global expansion, a time when concerns about job displacement were prevalent.

Mishra acknowledged the current strained relationship between India and China and the government's attempts to restrict Chinese investments through measures like "Press Note 3" of 2020. However, he emphasized that despite these challenges, China could become a significant source of capital for India's economic growth.

He pointed to existing examples of Chinese investment in India, such as China Light and Power's ownership of power plants, as evidence of the potential for fruitful collaboration.

"As we navigate a world of tighter financial conditions and increased competition for capital, embracing investment from countries like China could be strategically beneficial," Mishra stated at a conference organized by the Securities and Exchange Board of India-promoted National Institute of Securities Markets.