728 x 90

No FDI change wrt. China, clarifies Modi government as opposition is caught in a fix on the GWM deal

  • FINANCE
  • Team PresentMirror | Updated: Feb. 24, 2021, 9:42 a.m.




Indian Commerce Ministry has put hold to the rumours in the media for once and all that the foreign direct investment (FDI) policy towards China post disengagement in Ladakh remains unaltered and no Chinese investment can skip due procedure and necessary clearance. The strategy of opposition however to actually target the government on issue of easing FDI rules only further exposes their hypocrisy on the GWM Chinese deal, ironically made when 20 soldiers lost their life in the Galwan standoff.


category_finance/GWM_deal.jpg

As per recent reports from the Indian Commerce Ministry, the changes in the foreign direct investment (FDI) policy of India towards China post easing tensions between the two Asian giants in Ladkah, is mere a Media hogwash and there is no truth to the story. “There has been no change or ease in the policy nor will it ever be”, Government sources strongly discarded the recent media reports, which indicated that India may have given approval to various Chinese companies easing FDI policies post disengagement on the borders.

All investments from China need to go through the required procedures and clearance routes, no nod will only given to those investments that pose no threat to Indian security interests and a company that potentially impinges on India's security will never be cleared. Earlier, responding to the Galwan standoff, India had banned series of Chinese apps and put a halt to Chinese investment inflows. Beijing had strongly protested, remarking these actions to be against the ethos of Trade and rules of WTO.

The three proposals that are blowing up in the mainstream are companies based in Hongkong and Japan and not China. The recent proposal cleared 3 companies, Citizen Watches (India) Private Limited (Citizen Watches (HK) Ltd, Hong Kong (Citizen Watches Hong Kong) and Nippon Paint Holdings Co. Ltd, Japan. These were cleared by the Ministry of Commerce and Industry on February 5, based on January 22 meeting. There can never be relation to even these to the disengagement plan, as it was announced by Defense Minister, much later on February 11 in the Upper House of the Parliament.

The GWM deal with the Maharashtra government

A deal was signed in June 2020, between China's SUV specialist automaker Great Wall Motors, General Motors and the Maharashtra government headed by CM Uddhav Thakrey, giving commitment to a phased investment plan of $1 billion for acquiring Telagaon factory of General Motors in the state and promising an employment for 3,000 people. Easing FDI rules, tightened in the Galwan Faceoff, that happened in the same period may just give a life to this deal that is now caught up in a legal struggle. Just two weeks ago, General Motors Communications Director George Svigos had threatened to take the Maharashtra authorities to courtroom, mentionting that it had been served with the untenable alternative of “either producing vehicles for which there are no customer orders or pay workers indefinitely for doing no work”.

Hence, the strategy of opposition to actually target the government on easing FDI rules will only come to expose their own hypocrisy on GWM deal. The Maha Aghadi with which Congress party is a bedfellow, it may not be wise to target government on the issue that they need to happen the most in the first place.

Earlier Reuters reported citing sources that the GM-GWM was among the many proposals set to be given clearance, as long as the offers weren’t “delicate nationwide safety” points. The usual arms of the Congress party that tried to target the government on FDI, may just reopen the difficult question, “Why a deal was made with the Chinese motor giant, after China mercilessly and unethically murdered 20 of Indian Jawans in Ladakh”?

    • SUPPORT US
    • To fight yellow journalism and give you the news that is mirror of truth, we need your support. We need your support to fight the lies and the propaganda. Please contribute whatever you can afford.


Newsletter

    >
  • Subscribe

Recommended

Recent Post