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FDI policy Changes-Economic nationalism of India

FDI Policy Changes

By the time the big countries of the world control CoronaVirus, China will have controlled their economies. But now China is not only looking for investment opportunities in countries like Spain, Italy and Australia, but India is also on its target. And perhaps this is the reason why India too has now made preparations to stop China by making it’s Foreign Direct Investment or FDI policy change and making rules more strict.

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You can also call it India’s Economic FireWall against China and India’s Economic Nationalism. Because it is not necessary that countries like China invade India only by crossing borders, or to infiltrate India through Doklam. China can also do this through investment in the stock market and companies in India. Therefore, the government has now made some changes in the FDI rules.

China Imperialistic economy Policy
China Imperialistic economy Policy forced India to make FDI Policy Changes

Now any company in India’s neighboring countries, including China, will have to seek the government’s permission before investing in India. These rules will apply to all those countries whose borders are with India. Even if a Chinese company invests in a company outside India and that company later invests in India, it will be mandatory to get government permission before investing.

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However, China has been greatly disturbed by this decision of India and he has also said that this decision of the Government of India is against the rules of Vato.

In a press release issued by the Ministry of Commerce of India on this subject, it has been clearly written that these changes in the rules have been taken in view of the circumstances arising out of Corona Virus. The purpose of which is to stop the investment and TakeOvers which are being made by taking advantage of the opportunity.

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Earlier this rule was applicable only to companies in Pakistan and Bangladesh. But now in addition to China, Bhutan, Myanmar and Nepal have also been included. After this decision of the Indian government, China has also reacted and has described this decision as a violation of international rules.

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But India has taken this decision to save its economy because many big investment companies of China are taking advantage of this opportunity. These companies have become financially weak .. They want to make India’s economy a slave to China by buying a stake in Indian companies. Earlier, countries like Spain, Italy, Japan and Australia have also changed FDI rules to stop China.

China has an investment of about 30 thousand crores in these companies of India. It is said that now the future of the economy of any country will decide the StartUps of that country, and among them also those companies will be the most important which do their business with the help of technology. According to China GateWay House, at present there are 75 StartUps in India with Chinese investment and these companies are mainly offering services related to E-Commerce, Digital Payment, Media and Social Media
Although China’s share of FDI in India is less than 1 percent, but the way Chinese companies have increased their stake in companies related to daily life is a matter of concern.

We have to be careful with China’s imperial economic policy give all kinds of support to small scale and mid-scale industries in such a way that they can overcome the phase of economic depression and make themselves self-dependent.

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