Need to take nuanced approach for FDI from China: Official
foreign direct investments from China, and the government can consider FDI applications from Beijing in sectors involving high-end technologies like electric vehicles and batteries, which are not available in other nations, an official said. China has some modern capital equipment of different types, which can be important for India.
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Advocating for a nuanced view on the issue, the government official said that though there is no plan to ease rules under the press note 3, Chinese applications can be expedited in areas where India needs to step up its manufacturing capacity.
Under that press note, FDI from countries sharing land borders with India needs mandatory government approval in any sector. Countries which share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.
«Our view is that we have to take a nuanced view of where we need them (Chinese FDI) and where they are going to help us. We are not interested in them coming up and doing more mobiles for example, but there could be some areas like batteries, really good technologies or e-vehicles or any other manufacturing sector where they (China) have really good technology,» the official, who did not wish to be named, said.
Chinese investments can be attracted in the sectors where India does not have a choice or where there is special expertise and skills
