China is only the 18th country in the country to have FDI in India. China does not have any stock or bonds in India and the first 10 countries that conduct FPI (Foreign Portfolio Investment). However, India has always welcomed investment from China. India is now restricting its investment from China only under the post-Covid condition.
China is now preparing for some similar restrictions. A new FDI Act was created for this purpose. Clause 40 of this Act stipulates that a country that discriminates against China must take appropriate action. China has not yet applied this condition to any country. On Monday, China announced that India was discriminating.
May 3 is an important day for India-China investment. That’s when China’s license for FPI in India expires. People’s Bank of China does this in connection with SEBI. But this time SEBI has to seek permission from the Finance Ministry to renew the license. Discussion has already begun.
