The total FDI proposals of 12000 crore rupees of China are pending in the country.
The Central Government has begun to give approval to the Foreign Direct Investment (FDI) proposals of China on a case to case basis on the basis of reducing tension on the border. Earlier on the border dispute with China, the government had stopped the proposals.
- February 22, 2021, 5:37 PM IST
According to the news published in the Times of India, FDI Proposals of China have started getting approval for the last few weeks. Although still the government has stopped the proposal of big FDI. Only limited and small matters are being approved. Sources said that the approval of big proposals of FDI from China will be approved after carefully assessing the situation.
Also Read: Insurance Trend: Companies Paying Attention To Their Employees, Group Insurance Increases By 11 Percent
Coordination committee formed for approvalAccording to TOI news, the government has formed a coordination committee to make the process of FDI easy. The committee consists of officials from Home, Foreign, Commerce and Industry and NITI Aayog. However, this committee is not like the Foreign Investment Promotion Board which deals with all matters. All the FDI proposals of neighboring countries are scrutinized by the concerned ministry and decide on it. A similar system is also adopted in sectors like telecom or insurance. In these, proposals are reviewed before they are accepted or rejected.
ALSO READ: Job talk: skill of 100 crore jobs will change in ten years, so learn new skills and do re-skilling
Government changed rules after border dispute, China pending proposal of 12000 crores
Earlier, in case of approval from automatic route, companies were not compelled to take approval from the government. But after the boundary dispute, the government changed the rules of FDI. Government approval was made mandatory for the proposals of the neighboring country. It was also made necessary in those sectors where automatic clearance is allowed. Chinese investors were badly affected by this. In recent years, there has been considerable investment from China in the technology and digital space. Due to the changed rules, government approval is also needed to transfer a share. Due to this, FDI proposals of total 12000 crore rupees are pending in the country.
Also read: Follow this method to avoid increasing health insurance premium, will save money
Government does not want to allow investment to be affected in times of Corona epidemic
The government has made it clear that no compromise will be made in the matter of national security. But in the case of China’s FDI proposals, the government is taking steps by blowing up. This is reflected by the limited approval of Chinese FDI proposals. The government also does not want to allow investment to be affected during the time of Corona epidemic.