India is set to clear 45 investment proposals from China, which are likely to include those from Great Wall Motor and SAIC Motor Corp, government and industry sources told Reuters, as military tensions between the two countries ease at the disputed border.
The proposals have been held up since last year after India tightened controls on Chinese investment in the country in retaliation against alleged Chinese troop incursions in the western Himalayan region. China blamed Indian troops for the standoff.
About 150 investment proposals from China worth more than $2 billion were stuck in the pipeline. Companies from Japan and the U.S. routing investment through Hong Kong were also caught in the cross-fire as an inter-ministerial panel led by the interior ministry increased scrutiny of such proposals.
An Indian home ministry spokesman did not respond to a request for comment on the proposals to be cleared.
Two government sources who have seen the list said most of the 45 proposals set for early approvals are in the manufacturing sector.
Top trading partner
China has emerged as the top trading partner of India in 2020 despite the clashes in Galwan region, the ban on apps and restrictions on FDI by New Delhi.
The two-way trade between the countries stood at $77.7 billion, which, however, is lower than the previous year’s mark of $85.5 billion, as per the provisional data from the commerce ministry.
“The data indicate the quantum of integration the industry has with the Chinese economy,” trade analysts said.
China had also emerged as India’s biggest trade partner in the first half of the financial year 2020-21, pipping the US, which had held that position since 2018-19.