India Reviewing The Proposals With China: Under the current situation, the Indian Government has decided to review all the proposals with the Chinese enterprises. 50 investment proposals are within this purview.
India has formed several new rules regarding foreign investment proposals. According to the revised regulations made in April, all the investment proposals should be approved by the Indian Government, irrespective of new or additional funding. Among all these investors, China is the biggest one. In this pandemic condition, the new rules aim at the prevention of opportunistic takeovers. When asked, a senior Indian government official has stated that various clearances are now a need. “We are a bit cautious as one can ever imagine,”- he added.
India Reviewing The Proposals With China
However, the sources are not ready to disclose the names of the companies which are under consideration. Two different sources said that 40-50 investment proposals from the Chinese firms are undergoing review now.
Last week, India Government banned around 59 Chinese Apps, the most famous among them being Tencent’s WeChat and Bytedance’s TikTok. After the border crisis of the previous month, it became inevitable to keep China under check. This move has significantly affected China’s hold in the South Asian market.
In March, Brookings confirmed that the planned and existing investments of Chinese companies in India amount to over $26 million. One of the partners of the Indian law firm Krishnamurthy & Co, Alok Sonkar, has specified that more than 10 companies have approached him for advice regarding investment plans in India. From other sources, it has been observed that multiple Governmental agencies of India are continually communicating with the various Chinese investors with respect to both old and new proposals. The parties are still in a dilemma. They are waiting for a confirmed clarification from the India Government for their plans. Nothing has yet been announced from the official sources.