Forbidden no more: India begins OKing Chinese proposals
inter-ministerial panel has cleared five-six investment proposals in the electronics manufacturing sector, which include some pure-play Chinese companies and others with connections to the neighbouring country, people familiar with the matter said.
The development is significant as these are among the first such approvals in recent times given border tensions and the scrutiny that investments from China have been attracting in India.
Prominent names that have recently got approval include Chinese electronics major Luxshare, which is also a vendor for Apple, and a joint venture (JV) between Bhagwati Products (Micromax) and Huaqin Technology, in which the Chinese company will own a minority stake. Other proposals cleared include some Taiwan-based firms listed in Hong Kong or having investments from there.
«Some are Taiwanese companies which have one beneficial owner who has some interest in Hong Kong or is listed on the Hong Kong exchange while a few are genuine Chinese firms,» said an official on condition of anonymity.
Pressure from Industry
These clearances come amid increasing pressure from the electronics manufacturing industry to approve investments with Chinese links to help broaden and deepen supply chains in India.
Inter-ministerial group to draw up MSME scheme
Two rounds of meetings of the inter-ministerial panel have taken place so far and seven-eight proposals across all sectors have been cleared. A majority of these are in the electronics sector.
Queries and messages sent to
