NITI for easing investment rules for Chinese firms

The NITI Aayog has proposed easing rules that de facto require extra scrutiny for investments by Chinese firms, arguing that the rules have meant delays for some sizeable deals, three government sources said.

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Currently, all investment by Chinese entities in Indian companies needs to gain a security clearance from both home and foreign ministries in India. The NITI Aayog, has proposed that Chinese companies can take a stake of up to 24 per cent in an Indian firm without any approval being required, said the sources who were not authorised to speak to media and declined to be identified.

The proposal, reported for the first time by Reuters, is part of a plan to boost foreign direct investment in India and is being studied by the trade ministry's industries departfinance and foreign ministries, as well as Prime Minister Narendra Modi's office, the sources said.