Government Unlikely to Revise FDI Policy on China Despite Industry Push

The Indian government is unlikely to lift the investment restrictions on Chinese companies, even in the face of growing demands from the domestic industry to relax foreign direct investment regulations. 

 The warning sign raised by US President Donald Trump's regarding tariffs and the rising threat of Chinese companies and their exports will be diverted to other Asian markets, including India. The government position remains unchanged, and mainly as hostility and this initiative Indian government's push for manufacturing is seen to be exhibited by the Chinese regime. 

 an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the government route,” said the government in the note. But it’s not just the Indian private sector that is vouching to ease FDI from China at the time when the country is dreaming to integrate itself into the global supply chain. At an ASSOCHAM event, India’s Chief Economic Advisor (CEA), V Anantha Nageswaran, emphasised greater collaboration with China. 

“...So, one has to first resolve the question of, how do we integrate China into our supply chain, before we think about how to integrate ourselves in the global supply chain,” the CEA had said.