MarketDeal24.Com – Chinese investment in India has fallen to six-year low which has added up to a meagre $163 million in 2019-20. In addition to that, no new investment proposal has been filed since April last when the Indian government has decided to screen all foreign direct investment (FDI) from countries in which India shares a border.
On condition of anonymity, an Indian government official said, “We have decided to keep a close eye on Chinese investment, this is meant to discourage them. Without our permission, the Chinese cannot invest a single penny in India.”
The new rules formulated by the Indian authority are designed to keep Chinese investment at bay especially if they try to enter via a third country.
Though the state-controlled Chinese media is of the view that FDI inflows to India will dry down due to the ongoing COVID-19 pandemic but Indian authorities are arguing that Chinese investment in India accounts for 0.5% only.
A big chunk of investment from China has managed to enter India via third countries. Examples include Xiaomi’s entry via Singapore. A report by a third-party thinktank Gateway House estimates Chinese FDI at $6.2 billion, with investment in Indian tech companies at around $4 billion.