China should not be concerned, revised investment policy doesn't prohibit to invest: Govt sources

New Delhi [India], April 23 (ANI): China should not be concerned about India changing foreign direct investment (FDI) procedure as the move does not prohibit China from investing in India, government sources told ANI.
"There shouldn't be concern regarding procedural changes as it doesn't prohibit investment from neighboring countries which share land borders. The only change is FDI proposals are considered under the government's approval route, many countries did it," sources said.
India recently revised its FDI policy with the objective of preventing "opportunistic takeovers" of firms hit by the lockdown induced by the COVID-19 outbreak.
China raised objections to India's action and said the move violate the World Trade Organisation's (WTO) principle of non-discrimination.
"The additional barriers set by Indian side for investors from specific countries violate WTO's principle of non-discrimination, and go against the general trend of liberalisation and facilitation of rade and investment," said Ji Rong, the spokesperson of the Chinese Embassy in India.
According to the revised investment policy: "A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited. However, an entity of a country, which shares a land border with India or where the beneficial owner of investment into India is situated in or is a citizen of any such country, can invest only under the Government route."
India's revision of foreign investment is widely seen as a response of China buying huge stakes in foreign companies in the wake of falling share prices and evaluations due to the COVID-19 pandemic. (ANI)