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India is open to investments from Chinese companies, Minister of State for Information and IT Rajeev Chandrasekhar said in an interview with Financial Times (FT) on Wednesday.
“We are open to doing business with any company anywhere as long as they are investing and conducting their business lawfully and are in compliance with the Indian laws,” Chandrasekhar told the FT, adding that India was “open to all investment, including Chinese”.
New Delhi ramped up scrutiny of Chinese businesses after a 2020 clash in the Galwan Valley between the two countries. At least 24 Indian troops were killed in the clashes. Since then, India has banned more than 300 Chinese apps, including TikTok. India has also intensified scrutiny of investments by Chinese firms.
The Centre has launched regulatory probes against Chinese mobile manufacturers Xiaomi, Oppo, and Vivo, claiming that the companies violated Indian tax and foreign exchange rules.
Chandrasekhar also said that the tightening of foreign investments did not target China and it applied to other neighbouring countries as well including Pakistan, Bangladesh, and Nepal.
“I don’t think it’s anything very unique or to do with Galwan as much as it is a general trend of countries of the world waking up to the concern of having their backbone networks, tech ecosystems not necessarily trusted,” he told FT.
India has also been attracting foreign investments from companies pursuing the “China plus one” strategy. This is especially focussed on the technology sector including semiconductors and smartphones.
Apple has already started increasing the production of iPhones in India. It is also expected that AirPods will also be soon made here.
Earlier this month, The Economic Times (ET) reported that India has rejected Chinese automaker BYD’s proposal to set up a $1 billion factory in partnership with Hyderabad-based Megha Engineering and Infrastructure Ltd.
FT, however, reported that the application is “pending and still valid”.
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