In a major change to its foreign direct investment (FDI) policy, the Indian government has mandated that all investments from neighbouring countries, including China, would now require government approval.
This effectively closes the 'automatic route' for these nations investing in India. China has protested these changes in FDI policy saying they violate World Trade Organisations (WTO) principles of non-discrimination and are against free and fair trade.
Moneycontrol's Sakshi Batra does a 3-point analysis on the new FDI rules to understand the new norms, its impact on Indian trade and ties and how fare
is China's response.
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