Nearly 50 investment proposals from Chinese firms under govt scrutiny

The union government is reviewing around 50 investment proposals involving Chinese companies under a new screening policy.

Under new rules announced by the government in April, all investments by entities based in neighbouring countries need to be approved by the Indian government, whether for new and additional funding.

Apparently , China is the biggest of these investors and the rules drew criticism from Chinese investors and Beijing, calling the policy discriminatory. The new investment rules were aimed at curbing opportunistic takeovers during the coronavirus outbreak.

However, industry executives said that the border clash between the two countries could also become the reason for delays in approvals. The officials are being a bit more cautious now and various clearances are required as the border clash impacted on investment applications.