Experts have dismissed China’s objections to the latest amendment to the Foreign Direct Investment (FDI) policy in India. He says that in the economic crisis presently, saving our industries comes under the jurisdiction of the country and India has not violated the principles of WTO. Earlier, a spokesman for the Chinese Embassy in India said on Monday that the new rules were against the principles of the WTO (World Trade Organization) and the general practice of free trade.
Vishwajit Dhar, principal of the economics department of Delhi’s Jawaharlal Nehru University, said, “There is no agreement on FDI in the WTO. The rules of this organization do not apply to investment related issues. Therefore, India has every right to make such decisions in the interest of its industries”. He said that “whatever provisions are there in the WTO regarding investors are related to exports and imports”.
Professor Rakesh Mohan Joshi of the Indian Institute of Foreign Trade (IIFT) said, “India itself has been liberalizing its FDI policy.” The WTO does not make any decision to save its industry. Joshi said that this is a time of crisis in which India needs to decide to save its industry.
Sumit Kochhar, senior investment adviser at the Findak Group, said the policy decision of the Indian government was counter-productive as China’s central bank had earlier increased its stake in India’s financial services company Housing Development Finance Corporation (HDFC) to a little over one percent. He said that “due to the new rules, there may be a hurdle in Chinese investors to buy shares of Indian companies at any time. This may affect foreign investment in the future in India”
What amendment India has done to its FDI?
The government on Saturday amended the FDI rules, making it mandatory for the government to first approve every proposal for investment directly or indirectly from countries connected to the land borders of India. This decision is to protect Indian companies from opportunistic acquisition efforts in the situation arising out of Covid-19. India has opened up investment in other industries except for a restricted area by automatic route. By this route, instead of taking permission from any department of the foreign investor, only the Reserve Bank of India needs to inform the investment so that the investment is simple.
In India cases rise to 18,601; death toll rises to 590
According to data, the number of Covid-19 infected people worldwide has crossed 2 million. So far, the epidemic has killed 1,44,000 people worldwide. America is most affected by this. It has killed 35,000 people in the US and infected over 7,00,000 people.
Total of 1336 new cases have been reported in India in the last 24 hours. The number of people infected with the Covid-19 epidemic, including foreign nationals, has increased to 18,601. The Ministry of Health has given information about this. The Ministry of Health, presenting the latest data in the morning said that a total of 14,759 cases are active. A total of 3,252 patients who have recovered fully after treatment have been discharged from the hospital, while 590 people have died due to the epidemic.