India accepts Chinese investment, as long as they conduct operations lawfully: Chandrasekhar, MoS IT
India is open for Chinese investment despite border clashes between the two countries, Minister of State for Information Technology and Electronics of India, Rajeev Chandrasekhar, stated to the Financial Times. "We are open to doing business with any firm anywhere as long as they are investing and setting up their business lawfully and are in compliance with the Indian laws," Chandrasekhar told the FT, adding that India was "open to all investment, including Chinese".
New Delhi ramped up scrutiny of Chinese businesses after a 2020 border clash between the two countries, banning more than 300 Chinese apps, including TikTok. India has also intensified scrutiny of investments by Chinese firms. The Indian government recently rejected a USD 1 billion investment proposal of Chinese electric car maker BYD and its Hyderabad-based partner Megha Engineering and Infrastructures Ltd (MEIL) to set up an electric vehicle manufacturing plant.
India reportedly dismissed the plan from BYD and Megha Engineering and Infrastructures Ltd. reportedly due to national security concerns. The use of Chinese homegrown technology is a concern, per reports. The Indian government is not considering easing restrictions put in place a few years ago on foreign investments from countries that share land border with India, Finance Minister Nirmala Sitharaman said in March 2023.
"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," she said. In 2020, India sought to limit investments from China as political tensions heightened between the two countries with its soldiers clashing at the disputed Himalayan region. The restrictions called for beneficial owners of a country sharing a land border with India to seek its government's approval for investments. The step was taken to prevent hostile takeovers of Indian companies when the country was severely impacted by the COVID-19 pandemic.
