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FDI policy change may dry up access to Chinese investments in post-covid world

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The government’s effort to ring fence Indian industry from opportunistic acquisitions by China may dry up access to Chinese investments in the post-covid-19 world.

The industry department on Saturday notified changes in its foreign direct investment (FDI) policy by mandating government clearance for all FDI inflows from countries with whom it shares land borders.

The move comes amid reports of China trying to acquire distressed assets in strategic sectors globally, with companies seeing a substantial fall in their valuations because of the containment measures to rein in the pandemic.

In fact, Australia and the European Union have also taken measures to counter the Chinese move. However, India’s decision may come in the way of home-grown

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Russia
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Deaths: 237 619
Recovered: 0
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