The relationship between china and india is undergoing fluctuations. The relationship between the two nations has somewhat improved recently.
The government's reluctance to relax the restriction on Chinese investment is a different story. Information from sources has been provided. They claim that the Modi administration has no intention of reviewing press Note 3. According to press Note 3, any investment from nations that share a land border with india must always be approved by the government.
What is India's response to China?
For the Dragon, this is a clear message. It demonstrates that india places a high priority on security. It cannot risk opening the door for china unless it is guaranteed.
This is still very early, according to a source. press Note 3 relaxation has not yet been discussed. Currently, there is likewise little chance of doing so. More access and communication between the two nations are necessary for economic collaboration, according to Finance minister Nirmala Sitharaman. However, she also emphasized the importance of exercising "caution." She stated on a show that both nations would like to talk more with one another about economic cooperation. However, this must be done with caution.
When was India's FDI policy changed?
The Foreign Direct Investment (FDI) policy was modified by the government in april 2020. Press Note 3 of 2020 brought forth this modification. According to this, a business must only make investments through the government if it is based in a nation that has a land border with india, or if its owner resides there or is a citizen of that nation. Government permission is required even if ownership of the company is transferred to an indian entity.
What is India's message to China?
Relations between china and india have been tense ever since the 2020 Galwan Valley conflict. The original purpose of press Note 3 was to safeguard businesses throughout the pandemic. However, it is currently functioning as a significant national security weapon. While repairing economic ties, the government wants to make sure that national security and interests are not threatened.
India is interested in investigating prospects for economic collaboration with China. It is eager to boost investment, particularly in sectors like the production of electronics. However, it is equally wary of China's geopolitical objectives. This balance is attempted to be maintained throughout the continuation of press Note 3.
The government's reluctance to relax the restriction on Chinese investment is a different story. Information from sources has been provided. They claim that the Modi administration has no intention of reviewing press Note 3. According to press Note 3, any investment from nations that share a land border with india must always be approved by the government.
What is India's response to China?
For the Dragon, this is a clear message. It demonstrates that india places a high priority on security. It cannot risk opening the door for china unless it is guaranteed.
This is still very early, according to a source. press Note 3 relaxation has not yet been discussed. Currently, there is likewise little chance of doing so. More access and communication between the two nations are necessary for economic collaboration, according to Finance minister Nirmala Sitharaman. However, she also emphasized the importance of exercising "caution." She stated on a show that both nations would like to talk more with one another about economic cooperation. However, this must be done with caution.
When was India's FDI policy changed?
The Foreign Direct Investment (FDI) policy was modified by the government in april 2020. Press Note 3 of 2020 brought forth this modification. According to this, a business must only make investments through the government if it is based in a nation that has a land border with india, or if its owner resides there or is a citizen of that nation. Government permission is required even if ownership of the company is transferred to an indian entity.
What is India's message to China?
Relations between china and india have been tense ever since the 2020 Galwan Valley conflict. The original purpose of press Note 3 was to safeguard businesses throughout the pandemic. However, it is currently functioning as a significant national security weapon. While repairing economic ties, the government wants to make sure that national security and interests are not threatened.
India is interested in investigating prospects for economic collaboration with China. It is eager to boost investment, particularly in sectors like the production of electronics. However, it is equally wary of China's geopolitical objectives. This balance is attempted to be maintained throughout the continuation of press Note 3.
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