Chinese investors to wait as Centre unlikely to adopt open-door policy on FDI
New Delhi: The Centre is unlikely to adopt an open-door policy for Chinese investments. Earlier reports said the government was planning to start the process of FDI proposals.
The ban was there to prevent opportunistic takeovers or acquisitions of Indian companies because of coronavirus pandemic.
Worth mentioning here is that security clearance would continue to be compulsory in all cases, and as a part of a standard operating guideline all investment proposals from Beijing are to be examined by the ministry-concerned.
In April last year, the Department for the Promotion of Industry and Internal Trade (DPIIT) had issued guidelines that foreign investments from countries that share a border with India will require government approval. The rules change in April had hit Chinese entities as they had emerged as a big source of flows in recent years.The sectors badly hit were digital and technology.
Worth mentioning that since April, the government of India has received more than 120 FDI proposals of Rs 12,000 cr from China.