India’s Finance Minister: 54 Chinese investment proposals under review

India’s Finance Minister Nirmala Sitharaman has revealed that 54 Chinese foreign direct investment (FDI) proposals are still under review by the Indian government. As per a new revelation made by the Indian Finance Minister Nirmala Sitharaman on Monday, since the past year, New Delhi has received around 54 foreign direct investment (FDI) proposals from China. These proposals, as on March 21, 2023, remain pending.

In response to a question in the Indian Parliament, Sitharaman stated that the proposals were pending in various sectors, including manufacturing, services, and construction. She added that the government’s approval process for foreign investment proposals has been streamlined and expedited and that the Chinese proposals will be examined based on the revised guidelines. “54 FDI proposals received during the past year and current year with investor/ beneficial owner from China/Hong Kong are pending for decision with government as on March 21, 2023,” said Sitharaman while replying to a question in Lok Sabha, India’s lower house of parliament.

India tightened its FDI rules for neighboring countries in April 2020, requiring government clearance for investments from entities located in countries that share a land border with India, including China. The move came amid tensions between the two nations, following a deadly clash in the Ladakh region of the
Himalayas. Sitharaman’s comments come at a time when India and China are seeking to normalize relations and disengage from their border disputes. In February 2021, both countries agreed to disengage their troops from the Pangong Tso area in Ladakh, a crucial step towards reducing tensions along the border.

Despite the ongoing tensions, China remains one of India’s largest trading partners, with bilateral trade between the two countries valued at $77.7 billion in 2020.

Staff Reporter