China is India's largest trading partner but New Delhi will not lower guard
After almost one year since the bitter Galwan valley clash between India and China took place, New Delhi has gradually started clearing the pending investment proposals from Beijing. While the small ticket foreign direct investment (FDI) proposals are being cleared in the initial stage, sources said that India is not opposed to Chinese FDI per se.
"India has never banned Chinese FDI. The only change in the regulatory structure is the requirement of an approval from the authorities for Chinese companies to invest. This is not a very retrograde step and yes we will apply caution and I don't see why that should lead to such concerns," a policymaker on condition of anonymity said.
It is also learnt that India will study the proposals one by one and in cases which pose no threat to security will be approved.
"The government has always maintained that there is a need for healthy FDI inflow for economic growth and job opportunities," he said.
Since April 2020, India has received over 120 FDI proposals of about $1.63 billion from China.
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