Why India Is Slow On Chinese FDI Investments

Last updated on January 18th, 2021 at 08:08 am

Chinese FDI Investments: India is not moving ahead of a huge backlog of Chinese investment proposals, even while Beijing tries to sound of the Centre of the monumental delays. Pending proposals range from everything starting from power to telecom, electronics and even the financial sector. 

Even existing Chinese partnerships are facing a huge problem.  These include applications like Paytm, Zomato and Udaan. 

But India restructured its FDI policy in April after the Indo-China border tension.  The Centre also put a hold on various Chinese applications being used in India. These included tiktok and even Alibaba. 

India had reasons to turn its attention to neighbouring countries for investments, while it kept a close watch on Chinese investments too.  A section of the Indian government is keen that the strict stance should remain in place, without disturbing the existing investments. 

But the Centre’s stance remains clear- all future investments depend on how relations between China and India pan out in the near future. 

China has been acting difficult when it comes to investigating the outbreak of Covid-19. It has been slippery with the WHO team as well; something that has raised concerns for health and safety experts on the team. It has already soured its relationship with Australia over this issue.

India has already faced issues over cyber theft, phishing and malware problems with Chinese telecommunication parts. In April 2020, it had reported sent off a notice asking all Indian companies to run their Chinese spare parts through stringent testing before using them. Later, it had levied a ban on the use of Chinese electronic and telecommunication spare parts.