Domestic interests to dictate FDI for China

Goyal says there is no plan to revoke Press Note 3

- MUKESH JAGOTA

THE NEW BONHOMIE in relations with China is not driven by the recent developments in world trade, and the investments from the northern neighbour would be approved if that aligns with India's vision for technology and supply chain integration, commerce and industry minister Piyush Goyal said on Friday.

Addressing an event organised by The Economic Times, Goyal said that the process that has been laid down for approval of Chinese investments in 2020 would continue, ruling out any changes in the Press Note 3 that put an additional layer of scrutiny (government approval) on foreign direct investment from countries sharing land borders with India.

He, however, added that the Press Note 3 does not ban FDI from anywhere but was issued to protect opportunistic takeover of Indian companies as valuations fell sharply following the pandemic that struck the world in 2020. "We only take a cautious approach and there are free approvals," he added.