India is going to approve 45 investment proposals of China amidst continuing tension in the border dispute. News agency Reuters quoted government and industry sources as saying that India is ready to approve 45 investment proposals from China, including Great Wall Motor and SAIC Motor Corp. Let us know that tensions between the two countries have been continuing with the border dispute with China for the last nine months, however, tensions are expected to come down after the process of military withdrawal.
These proposals have been stuck in the pipeline since last year after India tightened control over Chinese investment in retaliation against Chinese military incursions into eastern Ladakh. China blamed Indian troops for the deadlock. Explain that tensions had increased further after the blood clash in the Galvan Valley between India and China.
According to the news agency Reuters, 150 investment proposals worth around $ 2 billion are stuck in the pipeline between the two countries. The investment proposal of companies in Japan and the US through Hong Kong has also been affected. According to the report, most of these 45 proposals are from the manufacturing sector, which are considered non-sensitive in terms of national security.
Sources did not reveal anything in detail, but two other government officials may also include Great Wall Motor and SAIC Motor in this list. However, a Federal Home (Interior) Ministry spokesperson did not answer the question of approving the proposals. Indeed, Great Wall and General Motors (GM) made a joint proposal last year seeking consent for the Chinese automaker to buy the American company’s car plant in India. The value of the deal is expected to be $ 250–300 million.
Great Wall, which plans to invest around $ 1 billion in India in the next few years, said that setting up operations in the country is an important part of its global strategy. It had planned to start selling cars in India from this year and was also considering electric vehicles. At the same time, SAIC started selling its cars in the name of British brand MG Motor in 2019 itself. The company had decided to invest about $ 650 million in India, of which $ 400 million has been invested. While the company will need government approval for further investment.
Explain that the news of Chinese investors getting approval in India is coming at a time when the withdrawal of both forces from Pangong areas has reduced the border tension between India and China. Advisers and lawyers believe that sectors such as automobiles, electronics, chemicals and textiles are seen as non-sensitive while data and finance related investments are considered sensitive. Government sources said proposals for non-sensitive areas would be swiftly approved, while those seen as “sensitive” would be reviewed later.