As tensions between India and China at the LAC has started cooling down in the past few weeks, Indian government now sees to clear investments proposals of Chinese companies in India.
A report by the Government officials from the Home Ministry says that 45 of the 150 business investment proposals are to be cleared first by the government.
Investments worth up to $2 billion were stuck in a queue due to the clash between Indian and Chinese soldiers at LAC in Ladakh. Many investments that were of U.S and Japanese were also said to have halted as these investments came through Hong Kong. Investments clearance are given only on a selective basis.
Sectors that are deemed or considered “non-sensitive like automobiles, textiles, electronics and chemicals are to get investment clearance by the government setup co ordination committee first. Other sectors that are deemed sensitive like personal finance, data management might or might not get clearance from the committee.
This step to clear investments can be seen as a step forward to try and smoothen existing tensions with China. However, the government’s ban on Chinese apps amidst the tensions with China will remain in place and there is no information about it yet. Though frictions cooled down at the moment, the government will proceed with caution for sure.