India will continue to impose restrictions on investments from neighboring countries, including China, said India’s Finance Minister Nirmala Sitharaman, a day after both China and India confirmed an agreement on military patrols in the highly disputed Himalayan border region.
Speaking at a gathering at the Wharton Business School in the United States on Tuesday, Sitharaman stated, “I cannot blindly accept foreign direct investment (FDI) simply because I want investment and forget or not know where the money is coming from.”
Sitharaman’s remarks come just before Prime Minister Modi is set to meet with the leader of the Chinese Communist Party, Xi Jinping, during their meeting at the BRICS summit held in Kazan, Russia. This meeting has garnered widespread international attention.
“We want to attract business and investment, but we also need certain safeguards as India is in a very, very sensitive region,” Sitharaman added.
She pointed out that the source of certain investments (rather than the identity of the investor) may raise concerns for Indian authorities. She stated that such restrictions would be implemented in consideration of national interests to ensure that India, while attracting foreign funds, does not compromise the country’s security and stability.
Following the border conflict between China and India in 2020, India has intensified scrutiny and security reviews of Chinese investments and operations in India. This measure is widely seen as aimed at preventing Chinese companies from acquisitions and investments in India.
According to Chinese affairs expert Wang He’s column in Dajiyuan, India’s bottom line is that China must withdraw from the territories it occupied in 2020 and cease its provocative actions at the border. The recent agreement reached between the two sides indicates a shift in China’s policy towards India, making significant concessions, likely due to the “global encirclement of China” strategy where China sees India as a potential breakthrough point.
However, Sitharaman’s recent statements suggest that India’s stance towards China remains firm. Currently, India is conducting 54 anti-dumping investigations, including 47 involving Chinese companies.
Reports from Indian local media indicate that Sitharaman mentioned at the gathering that India aims to become a developed country by 2047, focusing on areas such as infrastructure, including physical and digital infrastructure; investments, both public and private; innovation; and inclusivity.