India holds close to 50 Chinese offers for investment in regional firms

By Rahul Vaimal, Associate Editor
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India China Meeting
Prime Minister Narendra Modi with Chinese President Xi Jinping during an informal meeting conducted at Mamallapuram, India in 2019
Image Courtesy: PIB

The Indian government has reportedly held around 50 investment offers involving Chinese companies for reviewing under a new screening policy. 

The new set of rules which came into existence in April requires all forms of investments (new or additional funding) from organizations that are based in the neighboring countries, to be reviewed and approved by the Indian movement.

China which is one of the largest investors in the country has called the new set of rules discriminatory.

Even though the new investment rules were primarily focused on stopping opportunistic takeovers citing lowered valuations of Indian firms during the coronavirus outbreak,  industry experts do consider that the increasing tensions on the Indo-China border may further delay clearances.

When asked about the impact on investment applications since the border clash, a senior Indian government official reportedly said that “Various clearances are required. We are being a bit more cautious as one would imagine.”

Reports suggest that around 40-50 proposals from Chinese firms that were filed after the new rule came into existence are being reviewed with several deliberations made among government agencies along with invested organizations to understand the nitty-gritty of the deals finalized subject to government clearances.

Last week, India had banned 59 apps including ByteDance’s popular short video sharing platform Tiktok and WeChat by Tencent citing several user privacy and national security concerns.