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India allays fears on new FDI rules; says it doesn’t prohibit investment from bordering nations

NEW DELHI: Days after modifying FDI rules, India said on Thursday that no country should be concerned about the new regulations. China has strongly opposed the rule change, forcing countries that share the land border with India to invest through the government route.
The new rule, as previously reported, is intended to prevent "opportunistic acquisitions" of national companies in the wake of the economic downturn caused by the Covid-19 pandemic.
Government sources said there should be no concern about procedural changes made to FDI policy, saying it does not prohibit investment by any country with which India shares its border.
They said that India's decision should be seen in the context that many other countries have taken similar steps to protect their economies in light of the coronavirus pandemic.
On the subject of FDI policy, China said India's new rules violated the WTO's principle of non-discrimination and are against the general trend of free trade.
The impact of the policy was clear on Chinese investors, a spokesman for the Chinese embassy said earlier this week.
Chinese embassy spokesman Ji Rong said China hoped India would review "relevant discriminatory practices" and treat investments from different countries equally while fostering an "open, fair and equitable" business environment.

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