India Stands Firm on No FDI Support from China

Commerce and Industry Minister Piyush Goyal clarified that the Indian government has no plans to support FDI from China, despite suggestions in the recent Economic Survey. The stand follows the strained relations due to the 2020 Galwan Valley clash and the ongoing border standoff. Trade between the nations remains robust.

Commerce and Industry Minister Piyush Goyal clarified on Tuesday that the Indian government has no plans to support foreign direct investments (FDI) from China, countering suggestions made in the recent Economic Survey.

Goyal emphasized, “There is no rethinking at present to support Chinese investments in the country.” This comes despite the Economic Survey's pitch, which argued that attracting Chinese FDI could boost local manufacturing and exports.

The government's stance aligns with measures taken post-Galwan Valley clash in June 2020, including mandatory approvals for FDI from countries sharing land borders with India and bans on over 200 Chinese apps. While the bilateral trade between the nations has grown, the political tensions remain unresolved.