DPIIT Secretary Discusses Possible Expedited Approvals For Chinese FDI
(MENAFN- KNN India)
New Delhi, Aug 3 (KNN)
Rajesh Kumar Singh, Secretary of the Department for Promotion of industry and Internal Trade (DPIIT), recently addressed India's stance on Foreign Direct investment (FDI) from China and potential adjustments to related policies.
Singh indicated that while there are no current plans to amend Press Note 3 (PN3), the government may consider expediting approval processes for Chinese FDI that could benefit domestic manufacturing, in an interview with FE.
PN3, implemented in 2020 as a response to the COVID-19 pandemic, requires government approval for investments from neighbouring countries, particularly China, to prevent opportunistic takeovers of Indian companies.
"Given the issues with China, we are not going to be able to do a full-scale opening up," Singh stated. However, he emphasised that proposals that add value to India's manufacturing ecosystem could be considered under the existing regime.
Singh clarified that there is no blanket ban on Chinese investment, citing the possibility of approving investments from companies like Apple vendors if they enhance India's localisation capabilities.
Regarding the Production-Linked Incentive (PLI) schemes, Singh mentioned that tweaks to some sectoral programs are under consideration.
He also noted that a system has been established to expedite the processing of visas for technical experts required for machinery setup and testing in PLI sectors.
The DPIIT Secretary's comments come in the context of the Economic Survey's suggestion that India should attract FDI from China.
While maintaining a cautious approach, the government appears to be exploring ways to balance national security concerns with potential economic benefits from selective Chinese investments.
(KNN Bureau)
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