Commerce and Industry Minister Piyush Goyal has reiterated that the Indian government will not be reconsidering its stance on Chinese investments despite suggestions from the Economic Survey. Goyal emphasized that the Survey’s recommendations are not binding and stressed that the government’s policy remains unchanged regarding foreign direct investment (FDI) from China.
BulletsIn
- Piyush Goyal, Commerce and Industry Minister, stated there is no reconsideration of the policy on Chinese FDI.
- The Economic Survey recently suggested increasing FDI from China to boost local manufacturing and exports.
- The government made FDI approval mandatory for countries sharing land borders with India in 2020.
- Countries with land borders include China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.
- The Economic Survey proposed that attracting Chinese investments could benefit India’s exports to markets like the US and Europe.
- India’s trade deficit with China has been growing, with China being a major import partner.
- The bilateral trade between India and China reached USD 118.4 billion in 2023-24, with China becoming India’s largest trading partner.
- Despite minimal FDI, India has seen significant growth in trade, with exports to China increasing by 8.7% to USD 16.67 billion.
- Imports from China rose by 3.24% to USD 101.7 billion, widening the trade deficit to USD 85 billion.
- India has banned over 200 Chinese apps and rejected major investments from Chinese firms, reflecting ongoing tensions.
