New Delhi: The tense relations between India and China has affected the investment of Chinese companies as the foreign direct investment (FDI) of Chinese companies in India has declined significantly in the last three years, Minister of State for Finance Anurag Thakur said in a reply to a question in the Lok Sabha.
Thakur on Monday said, FDI from China in the last three years with FDI coming down to US $163.77 million in 2019-20 from US $350 million in 2017-18.
Lok Sabha MPs AKP Chinaraj and S. Jagathrakshakan asked the Finance Minister about the total investment of Chinese companies in various sectors in India during the last three years. In response to this question, Minister of State for Finance Anurag Thakur shared the details of FDI of Chinese companies in the last three financial years.
He told the Parliament that the total FDI inflow from Chinese companies in India in 2017-18 was US $350.22 million, while it declined to US $229 million in 2018-19 and further declined to US $163.77 million in 2019-20.
Thakur denied about any intentions of not allowing any Chinese firm to invest in India. To curb opportunistic takeovers or acquisitions of Indian companies due to the current COVID-19 pandemic, the government issued Press Note 3 earlier this year, he said.
A non-resident entity can invest in India under the FDI policy except those areas and activities which are prohibited, he said quoting Press Note 3.