While India is laying red carpet for Tesla, it said that market access to BYD Co will be restricted, as it courts investments from the US rival. “India has to be cautious about its strategic interests, who we allow to invest,” Commerce Minister Piyush Goyal said. “As of now it is a no” to BYD, he told Bloomberg on the sidelines of India Global Forum in Mumbai.

Earlier last year, India had rejected BYD’s $1 billion investment proposal with a local partner, and another Chinese carmaker Great Wall Motor Co also exited India after failing to secure regulatory clearances.

The remarks from the commerce minister come amid heightened scrutiny of China’s global trade practices and the growing perception that the world’s second-largest economy has not adhered to fair play. Goyal said, “The world has built itself to reach this stage over decades, not an overnight development. I believe the starting point of this churn is when China was admitted into the WTO.”

“The world was convinced that China would transform and be transparent, but it closed its eyes while China’s growth was fueled by unfair trade practices. The foundation of China’s growth was every action improper in the rules of the game,” he added.

It’s worth noting that US President Donald Trump has threatened to impose an additional 50 per cent tariff on China if it does not withdraw its planned retaliatory taxes by April 8.

India’s tough stance reflects a wider protectionist policy toward car imports. The country imposes a 100 per cent duty on fully assembled vehicles, the highest among major economies. This has effectively safeguarded domestic manufacturers through high tariffs. But with free-trade talks with the US and European Union gathering pace, pressure is mounting to open up the world’s third-largest auto market to foreign players.

“India has a lot of elbow room for trade deals with developed nations,” Goyal said, adding that the country will be cautious about “dumping” from China.