On April 18th, 2020 DPIIT (Department for promotion of industry and internal trade) has recently revised its foreign investment policy. Ergo, it will be very much difficult for companies from countries sharing borders with India, including China also to invest in the country.
According to a survey, China’s cumulative investment in India as of December 2019 was around 8 billion dollars. Therefore, it is far more than the total investments of India’s other sharing countries. Moreover, the impact of Chinese investment policy has been cleared out. Chinese investments have driven the Indian development on a higher scale. For example, mobile phones, household appliances, infrastructure or automobile industries have created a large number of jobs in the Indian nations. This has further helped the nation in the promotion of mutually beneficial and win-win cooperation. It is also noted that the Chinese enterprises have constantly donated money to help India in fighting this pandemic outbreak of COVID-19.
Probing further, because of the economic downturn faced by countries due to COVID-19, they all are going to work together. This decision is taken to create a favorable investment environment so that the speed of resumption of companies ought to increase their production as well as the operation. Furthermore, the additional barriers imposed by the nation of India are a violation of WTO’s principle of non-discrimination. The main of there is to go against the general trend of liberalization and facilitation of trade and investment.
More importantly, they have not yet confirmed the consensus of G20 leaders and trade ministers to realize a free, fair, non-democratic, transparent and stable trade just to keep the markets open. Companies have made further choices on the basis of market demands or principles. We are further hoping that the Indian government will revise relevant discriminatory practices, treat investments from different countries.
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