Nirmala Sitharaman Informs Parliament About 54 FDI Proposals Pending Links From China And Hong Kong Know Details

FM Nirmala Sitharaman on FDI: Finance Minister Nirmala Sitharaman informed Parliament on Monday that 54 FDI proposals related to China and Hong Kong are pending with the government. When asked questions about FDI in Parliament, the Finance Minister replied that the links of investors and beneficiaries of all those 54 FDI proposals have been found from China and Hong Kong. This data is till March 21, 2023.

change in rules

After the start of the Covid Pandemic in March 2020, the government had changed its FDI policy on April 18, 2020, to prevent Chinese takeover of loss-making Indian companies. The government had made this change for China as well as Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan, which are neighboring countries of India. But the main change in this was done only to stop the FDI of Chinese companies. Significantly, many Chinese companies like Huawei have been accused of having direct links with the Chinese Army.

approval from the government is necessary

The government has changed its FDI policy, now the government’s approval is necessary for FDI from countries sharing borders with the country. Earlier approval was not required in non-essential goods or areas which has now been changed to mandatory. Earlier, the government had informed last year that from April 2020 to the year 2022, a total of 423 FDI proposals were received from neighboring countries, out of which only 98 proposals were approved only after thorough investigation.

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