Advocates to lift the ban on Chinese investment in the era of US pressure, former vice -president of NITI Aayog gave this advice
NITI Aayog Former Vice President of Rajiv Kumar has advocated lifting the ban on investment in India from China amidst the US pressure. He said that this will promote domestic manufacturing and will create employment. Kumar said that China has become an important foreign investor in other countries and India needs that investment. He said that therefore, I believe that the time has come to seriously consider allowing Chinese investment in India. India and China have taken several steps in the last few months to improve bilateral relations. In June 2020, bilateral relations had deteriorated since the Hisank clashes between the armies of the two countries. Kumar said that I clearly say that I think it is time to remove ‘Press Note-3’ which controls investment from neighboring countries.
Ban is imposed under ‘Press Note 3’
Kumar said that as you know, the only neighboring country that matters is China. The government has made priority compulsory for foreign investment from countries sharing land border with India under the 2020 Press Note 3. These countries are China, Bangladesh, Pakistan, Bhutan, Nepal and Afghanistan. He said that investment from China will help in making things locally in India. Kumar said that if you allow Chinese manufacturing investment, they will manufacture here, produce and possibly they will be able to export from India.
Emerged as the biggest business partner
According to data from the Economic Research Institute Global Trade Research Initiative (GTRI), China has emerged as India’s largest trading partner with bilateral trade in 2023-24 US $ 118.4 billion which is slightly higher than the US. Prime Minister Narendra Modi is expected to visit China to attend the annual summit of Shanghai Cooperation Sangathan (SCO) later this month. He can travel to China after more than seven years.
Hope to attend SCO conference
Modi will visit Japan around August 29. After the journey ends, he will go to Tianjin for the Shanghai Cooperation Organization (SCO) summit. The SCO Summit will be held on 31 August and 1 September. In response to a question of US President Donald Trump’s announcement on India’s announcement of 25 percent additional fee on Russian oil procurement, Kumar said that we need to take steps to reduce its impact.
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