AGENCIES, New Delhi: India’s revised foreign direct investment (FDI) rules on allowing investment from neighbouring countries, which share land border with India violate WTO’s principle of non-discrimination and are against free and fair trade, China said on Monday.
China also calls for a “revision of discriminatory practices”. “The additional barriers set by Indian side for investors from specific countries violate WTO’s principle of non-discrimination, and go against the general trend of liberalization and facilitation of trade and investment. We hope India would revise relevant discriminatory practices, treat investments from different countries equally, and foster an open, fair and equitable business environment,” the Chinese Embassy said in its statement.
This come after the Indian government has amended the FDI rules and it seems the rules have been tweaked with the eyes set on China. As per the amended FDI policy, companies from neighbouring countries, which are interested in making an investment in India, will now have to take approval from the government. This will be applicable to all countries that share a land border with India and it does include China among others.
The revised FDI rule seeks to curb “opportunistic takeovers or acquisitions of Indian companies due to the COVID-19 pandemic”, the Commerce and Industry Ministry said in a press note earlier.