3 min readNew DelhiMay 2, 2026 08:53 PM IST"Given the increasingly restrictive external environment, Nageswaran said India has to come up with its own institutional or counteracting mechanisms as it didn’t have a “blocking statute” of its own," CEA Nageswaran said. (File Photo)India needs its own “answer” to Chinese and American laws that secure their supply chains and inward investments, Chief Economic Advisor (CEA) V Anantha Nageswaran said on Saturday, warning that companies are going to find it “more and more difficult” to leave the world’s second-largest economy and India will have to “accept and be willing to work alongside” a more restrictive external environment.Speaking on the second day of Ashoka University’s Second Annual Isaac Centre for Public Policy Growth Conference, the government’s top economist also criticised the Indian private sector, saying it must reflect on why it has been reluctant to invest and that it may have contributed to its own demand uncertainty.“In Hotel California, you said you can check out but not leave. But China is saying you can neither check out nor leave,” Nageswaran said on Saturday, referring to two directives issued in April: Regulations on the Security of Industrial and Supply Chains (Decree No. 834) and Regulations on Countering Foreign Improper Extraterritorial Jurisdiction (Decree No. 835). The two decrees allow foreign companies and executives to be penalised for trying to relocate their supply chains away from China in compliance with directives and measures. Further, the decrees also try to counter what it called “improper extraterritorial jurisdiction measures” by a foreign country that endangers China’s national sovereignty, security, and development interests and harms the legitimate rights and interests of Chinese citizens and organisations.According to the CEA, the decrees look to thwart “any country from trying to facilitate diversification away from China”. “In fact, surprisingly the day this came out, there was a g7+ meeting, I was there. It was about discussing global imbalances and this (Decrees 834 and 835) was not discussed at all,” Nageswaran said on Saturday.Given the increasingly restrictive external environment, Nageswaran said India has to come up with its own institutional or counteracting mechanisms as it didn’t have a “blocking statute” of its own.“And then we have to have a supply chain security framework which should be our answer to Order 834 and we have to have the equivalent of the American CFIUS. And we have to use our market access as an important lever to attract companies,” Nageswaran said.CFIUS, or the Committee on Foreign Investment in the United States, can review foreign investment transactions and block them if it determines that these deals can compromise US national security. According to analysts, China’s decision earlier this week ordering the unwinding of Facebook parent Meta’s purchase of AI firm Manus for $2 billion is a “mirror image” of CFIUS.Siddharth Upasani is a Deputy Associate Editor with The Indian Express. He reports primarily on data and the economy, looking for trends and changes in the former which paint a picture of the latter. Before The Indian Express, he worked at Moneycontrol and financial newswire Informist (previously called Cogencis). Outside of work, sports, fantasy football, and graphic novels keep him busy. ... Read More © The Indian Express Pvt LtdAdvertisementLoading Recommendations...May 02: Latest News01Thomas Cup: Lakshya Sen, Satwik-Chirag overcome doubts and disappointments, take matters into their own hands to put India on road to victory02Thomas Cup: How Ayush Shetty came of age on the big stage, taking India to the semifinals with a display of maturity and composure03Imprisoned Iranian Nobel laureate Narges Mohammadi transferred to hospital04Russian Athletics Federation announces India tie-up, AFI says no MoU signed05Slow-healing wounds, hair loss, and cold toes: When to see a doctor for potential heart issuesAdvertisementLive BlogCSK vs MI IPL 2026 LIVE Score: Noor snares Tilak, Mumbai (120/4) vs Chennai at Chepauk1 minute agoMaharashtra MSBSHSE HSC 12th Result 2026 LIVE Updates: Results out, scorecard link active at hscresult.mkcl.org9 minutes agoIran-US War Ceasefire Live Updates: Tehran must urgently free Nobel laureate Mohammadi to get medical help, says Nobel body24 minutes agoAssembly Elections 2026 Live Updates: West Bengal repolling sees 86.9% voter turnout till 5 PM27 minutes agoBseodisha.ac.in, BSE Odisha Class 10th Result 2026 LIVE Updates: Results out, direct link active at results.odisha.gov.in29 minutes ago