India plans to prevent domestic and corporate entities from engaging in business with China and Pakistan, particularly in the field of infrastructure projects, following the ban on Chinese applications.

India has taken the decision to prohibit China and Pakistan from key industries such as energy, coal, and telecom. This move comes after the banning of numerous apps from these countries in 2020 and 2021, aiming to safeguard Indian firms and entities from engaging in infrastructure projects with them.

On July 23, the government implemented a regulation for public projects involving neighboring countries, requiring states to seek government approval before conducting any business with China and Pakistan. This measure was prompted by the government's discovery that certain states were in talks with contractors from these countries for infrastructure projects, as well as information obtained from agencies. In October 2020, concerns arose regarding China's investments in critical sectors within India, as the ownership of Chinese firms remained unclear, as reported by Mint.

The government's worries escalated following China's attack on India in Ladakh in 2020, resulting in the loss of 20 Indian soldiers and casualties among the PLA ( People’s Liberation Army) . Consequently, the government banned popular Chinese apps like 'PUBG' and 'TikTok', and imposed additional taxes on over 10 sectors in an attempt to restrict the entry of Chinese products into India.