Three government officials said on Tuesday that India could approve some new investment proposals from China in the coming weeks. After the agreement between India and China, the Chinese People’s Liberation Army (PLA) has started evacuating the Finger 4 area on the northern coast of Pangong Lake in Eastern Ladakh in East Ladakh, on which He took over last year and changed the status quo on the Line of Actual Control (LAC).
In India from April 2020, the rule for companies of neighbouring countries to invest in any sector was implemented only after the approval of the government. According to this decision, China’s FDI (Foreign Direct Investment) proposals for investment in any sector in India first require government approval. According to the media report, the proposal for the investment of about Rs 12,000 crore from Chinese investments is currently awaiting the government’s approval. According to the report, after some improvement in the strained relations between the two neighbouring countries, India is preparing to approve some investment proposals from China.
The news agency PTI said in a report in December last year that the Central Government (Center Govt) has received more than 120 Foreign Direct Investment (FDI) proposals from China (China) of about Rs 12,000 crore since April. These proposals are related to increasing in old investment. Chinese investors have invested a lot of money in their country’s big start-ups like Paytm, Zomato, Udaan. They are awaiting fresh funds, but this is not possible without government approval. The investment proposals pending are for the power, telecom, electronics and finance sectors. China also raised this issue with the WTO (World Trade Organization).
Following the deadlock between China and India in eastern Ladakh, the Modi government at the center took this decision in April 2020 to rein in Chinese companies taking advantage of the opportunity amid the Corona epidemic. In April, the DPIIT (Department for Promotion of Industry and Internal Trade) said that a company or individual from any country bordering India would have to seek government approval before investing in any sector in India. The decision was taken by the government to prevent opportunistic acquisitions due to the coronavirus epidemic.