Delhi: After banning 59 Chinese apps, the Indian Government is evaluating 50 investment proposals that include Chinese entities too. This move came after the new rule of investment screening policy by the Indian Government. Under this rule, all the entities belonged to the neighbouring countries must need the Government’s approval to invest in Indian entities, whether for new or additional funding.
The new investment rule aimed to curb the opportunistic takeovers amid the coronavirus outbreak. However, China claims it as a violation of WTO norms of free trade. “Various clearances are required. We are being a bit more cautious as one would imagine,” stated a senior Indian authorities official in New Delhi, when requested in regards to the effect on funding purposes because of the border conflict.
All Indian industries come under the commerce ministry, which drafted the new policy, didn’t respond to the request to comment. The sources however declined to name the Indian firms due to confidentiality clause but around 40-50 applications involving Chinese funding proposals are now being reviewed by the officials, according to the new law.
“At least 10 Chinese clients sought my advice regarding investments in India. But still, there is no such clarity on the policy outlook from the Indian Government’s side. Uncertainty in timelines for the investment approval is dissuading parties, both Indian and Chinese, from proceeding with business as usual,” said AlokSonker, a partner at Indian law firm Krishnamurthy and Co.
Earlier, the Indian government banned 59 apps includes Tiktok and WeChat and others, target China’s digital space in the nation. This new screening policy will dent the Chinese expansion plan to be the superpower in the South Asian Market. As far as the Indian market is concerned, Chinese investment stands around $26 billion, according to the Brooklyn report.
Also Read: Manmohan Singh Cautions Govt On Border Issue With China