All Fresh FDI from China under Approval Route
Now
DPIIT issued Press Note 3 (2020 series) on 17 April 2020
Foreign investments
from countries with which India shares land border shall be under approval
route.
Foreign investments from
China, Afghanistan, Bhutan, Bangladesh, Nepal, Nepal and Myanmar are affected.
Sri Lanka and Maldives in South Asia are saved. Poor Afghanistan too is
affected as it has a 105 km border with Gilgit-Baltistan
area in POK (Pakistan Occupied Kashmir) on which India has a claim.
It could be
interpreted that if a Chinese makes investment of a few machines in an existing
venture or give goods on credit to its own venture, Govt
approval is needed!
Press note 3 does not
affect existing Chinese ventures as long as they do not increase present level
investment. However, should they up the level as on date, they have to run
around to get the approvals.
(Maybe a single
window time bound clearance can be suggested to boost investments. A minimum
may be set for approval. Below the limit may be deemed a
“auto approved”).