According to Rajeev Chandrasekhar, the Deputy Minister for Information Technology, India remains open to Chinese investment despite the past border clashes between the two countries. Chandrasekhar emphasized that India is willing to engage in business with any company from any part of the world, as long as they comply with Indian laws and regulations and conduct their operations lawfully.
All About Chinese Investment in India
Following the 2020 border clash, India heightened its scrutiny of Chinese businesses, leading to the banning of more than 300 Chinese apps, including the popular platform TikTok. Furthermore, India has been intensifying its examination of investments made by Chinese firms in the country.
One recent example involved the automaker from China, BYD Co, which proposed to establish a $1 billion factory in India. However, the proposal faced security concerns, causing some delays in the approval process. According to reports, the application from BYD is still valid and pending consideration by Indian authorities, as confirmed by an unnamed source familiar with the matter. However, neither India’s Commerce Ministry officials nor BYD has provided official comments on the situation.
In a separate development, Luxshare Precision Industry Co Ltd, a Chinese contract manufacturer for Apple, has applied for permission to build another factory in India. Despite already having two operational plants in India, Luxshare’s new application for another facility is currently pending approval from Indian authorities.
Despite the past conflicts, India is taking a case-by-case approach when it comes to evaluating Chinese investments. The government is carefully assessing each proposal to ensure security concerns are addressed appropriately, while also maintaining an open stance towards foreign investment from any country, including China.
This measured approach reflects India’s commitment to attracting foreign investments, while simultaneously safeguarding its national interests and security concerns. The situation remains fluid, and both Indian authorities and Chinese companies are closely monitoring the developments. As the process unfolds, further updates and official statements from relevant parties are expected.