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New Delhi2 minutes ago
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- In the initial phase, investment in new projects can be approved, then the number of existing projects can come.
- More than 150 proposals of China’s $ 2 billion have been stuck due to changes in foreign investment rules.
The government may approve some investment proposals of Chinese companies in the coming weeks. In fact, there has been some warmth in the relations between the two countries due to reduced tension along the border with China. Reuters has written in one of its news that it has received information about this from three government officials.
Reduced tension on the border leads to warmth in business relationships
The two countries retreated their troops from the border line at Pangong Soo in Ladakh last week. Nine months ago, there was a fierce struggle between Indian and Chinese soldiers after 1962. Since then, the soldiers of both the countries were busy with their equipment.
Government had made several policies keeping China in mind
When tensions at the border were at its peak, the government made several trade policies with China in mind. One of them was to prevent Chinese companies from joining government tenders. Apart from this, it was made necessary for the Chinese companies investing directly to get government approval. At the same time, dozens of Chinese apps including Tiktok were also banned.
More than 150 proposals worth nearly $ 2 billion are stuck
According to the changes made in the rules of foreign investment, companies in countries whose borders are bordering India will have to seek government approval for investment. Due to this, the pace of investment from China declined and more than 150 proposals of about $ 2 billion got stuck. One of the proposals stuck with the changes in the government’s investment policy is that of Great Wall Motors. The Chinese automobile giant is buying General Motors’ plant in India.
New investment may be allowed in the non-sensitive sector
A government official said, “Investment proposals will be approved for some new projects soon. But approval will be given for investment in those sectors which will not be sensitive in terms of national security. The news of the possibility of the Chinese companies approving investment proposals from Chinese companies has not been officially confirmed.
Thoughts on allowing investment through automatic approval route
Government officials said that after the approval of investment in the new project in the first round, investment can also be allowed for some existing projects. He said that China companies are also considering allowing investment in non-sensitive areas through automatic approval route. He said that the government may again allow companies from countries bordering India to invest up to 20% in the non-sensitive sector.