Large Chinese investment will be approved in the country, but only these sectors will remain limited
The Government of India is considering to approve large Chinese investments in sectors that do not have sufficient capacity for local companies. But in this case, government will not adopt any open door policy soon. This information has been received from sources. They say the government’s strategy is part of the three-dimensional Standard Operating Guideline, which the administrative ministries will follow to revise Chinese investment in India.
Apart from this, the government is also going to approve two other types of investment proposals. One of these is investment by companies or investors who have headquarters outside China. At the same time, the second proposal is for a very small investment of Chinese investors. Security clearance will be mandatory in all three cases.
Ideas under 3 major guidelines
According to a government official, the proposals are being examined under three major guidelines. The proposal for large Chinese investment will only be considered in a critical area where local companies have little or no presence. Let us tell you that since the violence between India-China on the eastern Ladakh border last year, the tension between the two countries has remained intact. But both countries are trying to improve relations.
There was a change in FDI policy in April 2020
India amended the FDI policy in April 2020. The government had mandated approval from the Government of India before investing in India on behalf of border-sharing countries with India. That is, the approval of the Government of India is mandatory before Bangladesh, China, Pakistan, Nepal, Myanmar, Bhutan and Afghanistan to invest in India.
