Indian govt preparing to relax Chinese investment!
Indian govt preparing to relax Chinese investment!The Economic survey presented two days ago advocated normalizing trade relations between india and China. Now its effect is also visible. india may relax restrictions on Chinese investment in insensitive sectors like solar panels and battery manufacturing in the coming days.India lacks expertise in solar panels and battery manufacturing, due to which domestic manufacturing is not getting a boost.Reuters, in a report, has quoted two government sources as saying that india may give the green signal to Chinese investment in solar panels and battery manufacturing.There has been tension between the two countries since the clash between Indo-Chinese soldiers in the Galwan Valley in 2020. After that india increased strictness on Chinese investment. But now the government is preparing to relax the restrictions in some sectors which are less sensitive in terms of security in terms of Chinese investment. However, the restrictions on Chinese investment in the telecom and electronics sectors will continue. According to a Reuters report, this will be the biggest and first attempt to normalize relations between the two neighboring countries after 2020. Reuters reported that no response has been received even after requesting comment on this from the Prime Minister's Office, Ministry of External Affairs, Ministry of Finance, Ministry of home Affairs and Ministry of Commerce.Earlier, in the Economic survey presented to parliament on 22 July 2024, a whole chapter has been written on India-China trade relations. In the survey, Chief Economic Advisor V. Anantha Nageswaran has suggested to the government that india should include itself in China's supply chain or attract foreign direct investment from china to increase its global exports. The survey said that china has a monopoly in the production and processing of critical and rare earth minerals. This can also have a negative impact on India's renewable energy program as india is dependent on imported raw materials for renewable energy.According to the economic survey, attracting foreign investment from china will help the US increase exports from india as east Asian countries have done earlier. The report said that attracting FDI is more beneficial than depending on trade. This will help india reduce the trade deficit with china, which is the largest exporter to India.