- By Nidhi Giri
- Wed, 23 Oct 2024 10:57 AM (IST)
- Source:JND
Finance Minister Nirmala Sitharaman informed that India will retain curbs on investment from nations with which it shares a land border. The remarks come after India struck a pact with China on patrolling the Himalayan frontier. The deal paves the way to end a four-year military stand-off and improve political and business ties between the true countries.
"I cannot blindly receive foreign direct investment because I want money for investment, forgetful or unmindful of where it is coming from," Nirmala Sitharaman told a gathering at the Wharton business school in the United States on Tuesday.
The dispute led to stagnation in ties between the world's two most populous countries at a time of exploding demand for electric vehicles, semiconductors and artificial intelligence, key growth areas offering opportunities for co-operation.
In 2020, India stepped up vetting and security clearances in its scrutiny of investments from companies based in neighbouring countries, but did not specifically mention any nations. The step, widely seen as aimed at staving off takeovers and investments by Chinese firms, effectively turned away billions of dollars from the likes of carmakers BYD and Great Wall Motor, while red tape ensnarled Indian firms with Chinese stakeholders, Reuters reported.
However, Indian imports of goods from China have surged 56 per cent since the 2020 border clash, nearly doubling Delhi's trade deficit with Beijing to $85 billion.