India and China are exploring economic re-engagement, with India partially easing investment approvals for contiguous countries to boost manufacturing and access technology. However, significant regulatory and political hurdles persist. India's revised framework for Chinese capital faces challenges with beneficial ownership and limited fast-track mechanisms. Concurrently, China's new Decree No. 837 tightens outbound investment, especially in technology, creating compliance complexities. The high political risk from border issues and India's trade deficit further complicate matters. Realizing economic potential depends on regulators swiftly enabling actual transactions, requiring creative deal structures to navigate both nations' evolving controls.