DWQA QuestionsCategory: GS Paper IVQ. The recent changes in FDI Policy subjecting investments from neighbouring countries to approval has been criticized by our large neighbors to be unethical. Cite the grounds on which this policy has been labelled unethical? Also, explain this policy from India’s perspective citing sound ethical grounds behind this policy. (GS Paper IV, 250 words, 15 marks)
1 Answers
Sanu sarkar answered 4 years ago

India has recently changed its FDI policy which have been criticised by neighbouring countries.

Criticism of neighbour country-
1) India’s neighbour country specially china has told that it is against the WTO rules.
2)More India don’t conform consensus with G20 leaders and trade ministers to realise non-discrimination,fair, stable trade,invest environment to keep the market open.
India’s argument-
1) India has only changed in investment route,not halted the investment of bordering countries.
2) Now India’s economic condition is not so good due to coronavirus pandemic,but in this situation China has invested in HDFC which raises it’s share holder from 0.8% to 1.08% which is concern for India.
3) China wants to avail the economic situation of India so they are investing in India to influence over the company.
Conclusion- India has taken measure so that any bordering country can not harness redundant share of company.It will also reduce the dependency on neighbouring country specially on China.