India is going to approve the 45 investment plans of China which include the names of Great Wall Motor and SIAC Motor Corporation. This news came after the tension on the border between India and China got reduced which is a green signal to the investors. India took a strong stance about Chinese investment about a year ago after the skirmish between the soldiers in the Western Himalayan region.
Joint Project of Great Wall Motor and SAIC Motor Corp
Last year Great Wall Motor and SAIC Motor Corp made a joint proposal seeking consent for the Chinese automaker to buy the American company’s car plant in India, with an investment of around $250-$300 million. Over the next few years, Great Wall plans to invest $1 billion in India. The company had said earlier that a part of its global strategy lies in establishing operations in the country. It was pondering bringing in electric vehicles and had also planned to start selling cars in India from this year. Under the British brand MG Motor of 2019, SAIC had started selling cars in India. Even it has invested around $400 million of the nearly $560 million in India and also would need the approval to bring more investment.
150 Investment Proposals of $2billion of China
Nearly 150 investment proposals worth more than $2 billion from China were stuck. Companies from Japan and the U.S. routing investment through Hong Kong were stopped. A recent report stated that for preliminary approval, out of the 45 proposals, most are in the manufacturing sector. And that is considered to be non-sensitive in terms of national security.
Full Plan of the Proposal Going Forward
For national security, the administration plans to split up over 150 proposed Chinese investments into three categories. Sectors involving data and finance-related investments are considered sensitive while sectors such as chemicals, automobiles electronics are deemed as non-sensitive. Proposals from sensitive sectors will be reviewed later while those from non-sensitive sectors will be approved faster.
TPT Policy Advocacy & Recommendations
- The change in the attitude of the Government of India has highly affected the border situation. If the Government maintains this attitude, then it can bring more and more profit to India. The steps of approval of the investment in such a strategic manner have come under the limelight and which is much beneficial to India in the coming years.
- The Central Government must bring in some other new tactical plans in which the economy of India also gets revived which are doomed due to the global pandemic. Other investment plans must also be taken up for sure so that India does not lag at any point.