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Government begins clearing FDI proposals from China amid easing border tensions: Report

The government has set up a committee of officers from ministries of Home, External Affairs, Commerce and Industry, and NITI Aayog to look into FDI proposals from China.

February 22, 2021 / 10:16 AM IST
Representative image

Representative image

With the LAC disengagement process underway, the government has begun clearing foreign direct investment (FDI) proposals from China after over 9 months' freeze.

"The government has been discussing FDI proposals from China on a case-by-case basis. Over the last few weeks, approvals were granted to smaller cases," Times of India reported, citing government sources.

In April 2020, at the height of the tensions, India tightened the rules for FDI from countries with which it shares a land border. It made official approval mandatory for proposals from neighbouring countries even for sectors that normally get automatic clearance.

The report further said that large proposals would be taken up after a "careful analysis of the situation". Additionally, the Centre has also set up a committee of officers from ministries of Home, External Affairs, Commerce and Industry, and NITI Aayog.

Read: Sino-India disengagement process in eastern Ladakh complete, says Rajnath Singh

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The committee is not like the Foreign Investment Promotion Board, which looks at all the cases, a source told the newspaper.

Moneycontrol could not independently verify the report.

India framed various policies aimed at hurting China, including blocking the nation from participating in government tenders, compelling any Chinese company investing in India to seek approvals and banning dozens of Chinese apps. However, India is poised to clear some new investment proposals from China as relations between the two neighbouring countries improved.

Galwan Valley clash | China releases visuals of bloody face-off

On February 10, India and China began disengagement from the Pangong Tso area, in the Ladakh region of the western Himalayas, following a nearly nine-month-long standoff after the worst clash between the neighbouring countries since 1962.

On February 20, India and China also held extensive deliberations on expanding the disengagement process in eastern Ladakh at the 10th round of the military talks that lasted for around 16 hours.

In the talks, India is learnt to have insisted on a faster disengagement process in areas like Hot Springs, Gogra and Depsang to bring down tension in the region.
Moneycontrol News
first published: Feb 22, 2021 10:16 am

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