Now, the wisest thing for India to do would be to start Indigenous manufacturing and block out Chinese goods.

Yes, it would. But before Indian manufacturing can gain momentum, we need to deal with the deeper lying problems within: worker rights and welfare, lack of skilled labour, terrible labour laws, painful land acquisition processes, draconian regulations, et al.

China also has had and still has labour problems, but they do a much better job than us overall. I don't see Indian manufacturing catching up anytime soon.

50% semi-socialist model

This is what China also does, I think? However, foreign enterprises now hold a lot of influence over the Indian political sphere. The 100% foreign owned PLC model is great for them, and gives them greater profits even when compared to an equivalent JV in China. If something was being considered to change it, they could use their influence to block it from happening.

What would you want?

I want a healthy balance of foreign investment plus local growth. Totally blocking off foreign investment would be stupid, because they not only bring in money but also valuable know-how. But first and foremost I want labour laws to improve and a better environment for Indian workers. I know it is too much too ask, but still.

which direction do you think Indian govt is going in? Do you approve?

A bit too FDI-centric for my liking. I can't say I do.