India mulls easing barriers against Chinese investments for non-sensitive sectors: Report

New Delhi clamped down on investments from China following a border clash in Ladakh’s Galwan Valley in 2020.

India is looking to ease barriers for Chinese investments in certain sectors as New Delhi seeks to mend ties with its Asian rival amid trade uncertainty with the US, Mint reported citing sources on August 18.

Under the proposal, the Centre is identifying non-sensitive segments such as manufacturing, renewable energy and consumer goods, the report said. Investments in these sectors will be cleared by the government through a faster approval process, the paper said, adding that the automatic route is unlikely for Chinese proposals.

The officials of both the nations are engaged in discussions to find out a “workable solution” and sensitive sectors such as defence, telecom and critical digital infrastructure will be kept out of the proposal, the newspaper said.

New Delhi clamped down on investments from China following a border clash in Ladakh’s Galwan Valley in 2020.

However, in the last few weeks, the relationship between the two neighbours has improved with several key minister visiting China ahead of Prime Minister Narendra Modi’s scheduled visit later in August.

Chinese foreign minister Wang Yi is also set to visit New Delhi from August 18 to August 19.