InvestorQ : Has India put some restrictions on Chinese FDI investments? Will it impact investments into India?
Dawn Cherian made post

Has India put some restrictions on Chinese FDI investments? Will it impact investments into India?

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Dilmini Mercia answered.
1 year ago
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Government of India may finally give a policy twist to the China investment concerns. Government may set a cap of 10% beneficial ownership in the case of FDI flows from 7 countries. These seven countries include China and other countries contiguous to India. This will avoid indirect flows into India. The target of Indian policymakers is clearly to keep a tab on the flows from China to avoid any tacit loss of control. The security bogey reached a crescendo after HDFC admitted that Chinese banks owned more than 1% in the company. In addition, the government is also likely to insist on prior government approval. With the Chinese becoming the wealthiest investors, this could surely hit FDI flows into India.

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