As soon as the global rage against China started, India became one of the first nations to ban Chinese items and control its digital indulgence as well. Banning several apps like Tik Tok, WeChat, and other 59 apps led to a cold war between India and China. And now after 9 months, India has opened the door to china by allowing FDI approvals. But the government will only allow smaller cases as of now and follow the ‘case by case’ plan before it clears the bigger issues.
Indo-china relationship likely to get a boost by this action
The banning of certain Chinese apps and the tension on the Ladakh border have not gone down well between the two countries. But by FDA clearance, it can be in good terms again and it can also boost the Indian economy massively. While India has opened arms in allowing the Chinese FDI clearance, China on the other hand must also allow basic privileges to the nation. Both the countries must also ensure there is peace at the Ladakh border between the central forces. Hopefully this action by the Indian government shall help in improving the relationship between both nations.
A Coordinate Committee Set For Carrying Out the Process
A coordinate committee has been set by the central government so that the approval process is carried out smoothly. The committee will include the home ministry, external affairs ministry, commerce, and industry ministry, and Niti Aayog, which especially looks after such cases. The ‘case by case’ approval of the FDI shall ensure the smaller proposals are cleared first and the bigger ones are handled after that. A source from the committee said, “The committee is not like the Foreign Investment Promotion Board, which looked at all the cases”.
Rule Set For Govt Approval before Clearance of FDI Even On Automatic Clearances
On April last year, the centre stated that prior approval by the government is necessary for any FDI clearance even if it falls under the category of automatic approval. This rule hit the Chinese investors to a greater extent and investment of almost 12,000 crores went for a pile up’ after this decision. However, now that things have become normal and the centre is looking for FDI clearance, it is expected that soon it will see a boost in economy and companionship between both countries.
TPT policy advocacy and recommendations
- The China matter must be dealt with ‘smart and foresight’ approach and not with any political agenda. Having said that, India must ONLY allow such proposal clearances that benefit it in terms of trade and economic boost.
- The ‘case by case’ approval is one good thing that the government has planned for the FDI clearance as it would allow checking on the reaction of the Chinese authorities at large.