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No reconsideration on promoting FDI from China, bilateral trade growing rapidly amid tension
The Indian government is not reconsidering any kind of promotion of foreign direct investment (FDI) from China. Despite the tension between the two countries, bilateral trade between India and China has grown rapidly. Amid the disputes, China has emerged as India's largest trading partner with bilateral trade of $118.4 billion in 2023-24.
Commerce and Industry Minister Piyush Goyal said on Tuesday that the government is not reconsidering any kind of promotion of foreign direct investment (FDI) from China. He said that whatever has been said in the Economic Survey in this regard recently, only represents new ideas.
Goyal said that the things said in the survey are not binding on the government at all. In 2020, the government made its approval mandatory for FDI from countries sharing borders with India. The countries sharing land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan.
Amid tense relations with China, the pre-budget economic review 2023-24 presented in Parliament on July 22 advocated increasing foreign direct investment (FDI) from neighboring China to promote local manufacturing and tap the export market.
Goyal has given this statement while reacting to this. The survey said that as the US and Europe are shifting their immediate supply from China, it is more effective for Chinese companies to invest in India and then export products to these markets instead of importing from the neighboring country.
