New Delhi: The Economic Times reported Tuesday, citing government officials, that India is considering a plan to allow up to 26% of foreign direct investment from countries with which it shares land borders, including China, without government scrutiny in some sectors.
In April, India stepped up scrutiny of investments by companies located in neighboring countries, in what is widely seen as a move to stave off acquisitions by Chinese companies during the coronavirus outbreak.
An Indian government notification on April 17 said that investments from an entity in a country that shares a land border with India will require government approval, which means it cannot pass through a so-called automatic route.
The Economic Times report stated that a committee of senior government officials was discussing various options on easing investment rules from neighbors and a decision is likely to be taken soon.
The Ministry of Trade and Industry did not immediately respond to an email from Reuters requesting comment.
Tensions between India and China remain high with tens of thousands of troops deployed along the remote border in the Himalayas, even as the two countries devise a plan to end months of military confrontation.