India may review stance on Chinese investments to help firms relocate

The Government may review its stance on Chinese investments to help global firms looking to relocate to the country, CNBC-TV18 reported on Friday, citing government sources.

Several global companies are exploring a China Plus One strategy to avoid supply chain bottlenecks as the world’s second-largest economy grapples with a surge in COVID-19 infections.

Multinational companies are keen to pursue manufacturing in India, but want to continue existing Chinese joint ventures, CNBC-TV18 reported.

IPhone maker Apple wants China’s BYD to be allowed to sign a joint venture with an Indian company to move iPad production to the country and the government might consider the move, the report said.

The government might allow joint ventures with Chinese companies in sectors where India does not have technical expertise, the report said.

India and China have maintained frosty relations following the worst border clash between the neighbouring countries since 1962 in June 2020.

Following the clash, India has blocked the nation from participating in government tenders, compelled Chinese companies investing in the country to seek approvals and banned dozens of Chinese apps. Reuters