Commerce Minister Piyush Goyal clarified on Tuesday that the government’s stance on Chinese investment remains unchanged, contradicting views expressed in the Economic Survey.
Responding to questions in the Lok Sabha, Goyal emphasised that the government carefully examines Chinese investments. Congress MP Gaurav Gogoi accused India of becoming reliant on China, citing the Economic Survey’s support for Chinese foreign direct investment.
Goyal retorted that India’s dependence on neighboring countries increased during the United Progressive Alliance’s rule, not under the current government. He asserted that the government’s scrutiny of Chinese investments continues, and its position has not shifted.
Goyal hit back at the Congress, saying India had become dependent on neighbouring countries under the United Progressive Alliance (UPA) rule.
”Under the Congress, imports increased from USD 4 billion to USD 40-45 billion, which is more than 10 times. In our term, the increase is only 2-2.5 times. We took steps to make India self-reliant,” the minister said.
”I am making a direct allegation against the UPA…. Their name has changed, it is now the INDI Alliance…,” he said.
”We do not know what was that MoU (memorandum of understanding)with China. The trade deficit went up by 30 times under the UPA…,” the commerce minister said.
”The BJP-led NDA has controlled China and also their investment,” he asserted.
Referring to the Economic Survey, Goyal said, ”As far as the chief economic advisor is concerned, they bring an independent, autonomous report. It is their thought, the Government of India at present has not changed its stand.” ”The investment that comes from China is checked, wherever we do not feel it is appropriate, it is stopped. Our policy remains the same, the chief economic advisor gave an advice,” he said.
The pre-budget Economic Survey made a strong case for seeking FDI from Beijing to boost local manufacturing and tap the export market.
As the United States and Europe are shifting their immediate sourcing away from China, it is more effective to have Chinese companies invest in India and then export the products to these markets rather than importing from the neighbouring country, the survey said.
India faces two choices to benefit from the ”China-plus-one strategy” — it can either integrate into China’s supply chain or promote FDI from China.
With inputs from agencies.
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