India’s new FDI policy is discriminatory and against free trade: ChinaLogYcode
India’s latest foreign investment strategy goes against existing free-trade and investment laws, China said on Monday.
India mandated on Saturday that investments from neighboring countries now need permission from the government, essentially closing the “easy path” used by companies and individuals to set up business in the country.
As the coronavirus pandemic wreaks havoc on the world, India’s change has been due to the growing risk of “opportunistic acquisition” of its businesses.
“The additional barriers set by Indian side for investors from specific countries violate WTO’s principl e of non-discrimination, and go against the general trend of liberalisation and facilitation of trade and investment,” Chinese embassy spokesperson Ji Rong said in a statement in Delhi.
Calls for curbing Chinese participation were made after the People’s Bank of China (PBoC) raised its shareholding in Housing Development Financial Corporation (HDFC) in the sudden reversal of India’s largest mortgage lender portfolio.