The federal government's premier think-tank Niti Aayog had final month advised dropping the situation of necessary prior approval for as much as 24% FDI from China.
There was a warming of ties between the 2 neighbours in latest months with bilateral visits of ministers and bureaucrats, New Delhi and Beijing agreeing to begin direct flights, permitting vacationers, and stepping up dialogues to resolve border disputes, additional accelerated by US President Donald Trump's tariff regime. The US' 50% tariffs on India got here into impact on August 27.
China final week agreed to facilitate provide of uncommon earth magnets and fertilisers to India following a go to by Chinese language overseas minister Wang Yi. Exterior affairs minister S Jaishankar this month visited Beijing for the primary time in six years and met Chinese language President Xi Jinping amid efforts from each side to reset ties. PM Narendra Modi is ready to go to China for the Shanghai Cooperation Organisation Summit, scheduled for August 31-September 1, his first in seven years. He'll meet Chinese language President Jinping on the sidelines of the summit.
Press Word 3
Press Word 3, makes prior authorities approval necessary for overseas investments from nations that share land borders with India.
In April 2020, India made prior authorities approval necessary for FDI from nations which share a land border with it, no matter sectoral caps by amending Press Word 3 to curb opportunistic takeovers of home firms. The transfer was directed at China and it adopted border clashes between the 2 neighbours.
On the ET World Leaders Discussion board 2025 final week, commerce and business minister Piyush Goyal mentioned the choice was essential at that time of time and that it additionally associated to India's strategic curiosity in sure sectors which the federal government needed to stay in Indian palms.
“It doesn't ban FDI from wherever…We solely take a cautious method, and there is a pre-approval (required) and now we have given approval to many firms,” he mentioned.
Requested if Press Word 3 will proceed, Goyal mentioned, “I can solely converse in regards to the scenario at the moment. As I mentioned, when the instances change, conditions change. Selections could be made to swimsuit the instances”.
Niti had final month advised dropping necessary prior approval for as much as 24% overseas direct funding from China
