Government To Review China-Backed Investments; Six To Seven Deals May Face Delay — NDTV Profit Exclusive
Amid China’s recent support for Pakistan during a military conflict, India is set to tighten scrutiny of Chinese joint ventures and pending investment proposals, source say.
The government plans to conduct a fresh, tighter review of at least six to seven major China-backed investment proposals, potentially delaying their approvals, according to people familiar with the matter.
The government is expected to intensify its scrutiny of foreign direct investment proposals and joint ventures backed by Chinese firms, the people told NDTV Profit, adding that several new joint ventures may be proposed as a workaround to existing restrictions, but pending proposals and ongoing negotiations could also face delays.
Existing and future China-backed joint ventures may be subject to stricter compliance requirements, the people said. The move comes as tensions have risen following China’s support for Pakistan during a recent military conflict with India.
India had previously imposed curbs on foreign direct investment from China in April 2020, stating that all such proposals must be examined and cleared by the government on a case-by-case basis under the framework.
