new delhi: Investments from China into India are governed by the existing foreign direct investment (FDI) policy and as of now, there is no change in that, a top government official said on Wednesday.
FDI applications from countries sharing land borders with India like China have to mandatorily seek government approval for all sectors. This policy was issued in April 2020.
“The policy with regard to investments (from China) is laid down in the press note 3, so we continue with that policy. As of now, there is no change in that policy. In case if any change comes in, we will let you know,” secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) secretary Amardeep Singh Bhatia told reporters here.
He was replying to a question about Chinese investments into India in terms of promoting Make in India.
Bhatia also said the sentiments among foreign investors for India is positive. “Investors are very enthusiastic about investing in India,” he added.
In 2020, the government made its approval mandatory for FDI from countries that share land borders with India.
Countries that share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.
On July 30, Commerce and Industry Minister Piyush Goyal said there is no rethinking in the government to support foreign direct investments
(FDI) from China.
These remarks assume significance as the pre-Budget Economic Survey on July 22 had suggested that instead of importing goods, focusing on FDI from China seems more promising.
China stands at the 22nd position with only 0.37 per cent share ($2.5 billion) in the total FDI equity inflow reported in India from April 2000
to March 2024.
The ties between the two countries nosedived significantly following the fierce clash in the Galwan Valley in June 2020 that marked the most serious military conflict between the two
sides in decades. The Indian and Chinese militaries have been locked in a stand-off since May 2020.