“We have ourselves decided to keep close tabs on Chinese investment, which was meant to discourage them, especially because of the takeover threat for our companies. Without our permission, they cannot invest a single yuan in India,” a authorities supply stated.
India-China LAC stand-off: Complete protection
Officials stated some buyers could also be eager to keep away from scrutiny and could also be ready for the detailed clarifications to emerge, which is able to specify issues just like the definition of “significant beneficial ownership”. The new guidelines on FDI for neighbouring international locations, put in place with a watch on Beijing, had been meant to make sure that Chinese buyers don’t enter India by way of a 3rd nation.
While state-backed Chinese media prompt that FDI inflows will decelerate as a consequence of Covid-19 in addition to the border skirmishes, authorities officers had been, nonetheless, dismissive, arguing that China accounts for 0.5% of FDI inflows into India.
Official information confirmed that China was at quantity 18 in phrases of supply of FDI with a number of different international locations similar to Singapore and Mauritius forward of it.
A big quantity of Chinese buyers, similar to electronics items maker Xiaomi, have entered India by way of Singapore and different international locations, which don’t replicate within the official numbers. A report by thinktank Gateway House estimated Chinese FDI at round $6.2 billion, with funding in Indian tech corporations at round $four billion. Even at this degree, it is going to be decrease than Singapore, Mauritius, US, UK, Germany, Netherlands and Japan, amongst others.
The official numbers counsel that of the $2.four billion FDI from China within the last 20 years, near $1 billion has gone into the auto sector.
In Video:China’s investment in India hits 6-year-low