Tuesday, 02 January 2024 12:17 GMT

Indian Minister announces no alteration on stance regarding Chinese investment


(MENAFN) India's position on foreign direct investment (FDI) from China remains unchanged, according to Commerce Minister Piyush Goyal. This declaration came shortly after the release of the country’s annual Economic Survey, which suggested that attracting investment from Chinese companies could play a crucial role in enhancing Indian exports.

The Economic Survey proposed that integrating Indian manufacturing into China's supply chain could be beneficial. It emphasized that India faces a decision between relying solely on imports or incorporating Chinese investment to enhance its production capabilities. The report argued that leveraging Chinese investment could potentially boost Indian exports to key markets like the US, similar to the approach taken by various East Asian economies, including South Korea, Taiwan, and Singapore.

The survey highlighted a strategic advantage of having Chinese firms invest in India to produce goods for export to Western markets, rather than importing those goods directly from China. This strategy could help India tap into global supply chains more effectively, particularly as the United States and Europe reconsider their immediate sourcing strategies.

Despite these recommendations, Minister Goyal emphasized that the Economic Survey is not a definitive policy guide and affirmed that India’s current policy stance on Chinese investment remains firm. The government has no plans to alter its approach to attracting foreign investment from China, as stated by Goyal in response to the report’s proposals.

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