Vikrant Shekhawat : Jul 25, 2024, 04:50 PM
India-China Relation: The Indian government is now considering showing some kindness to China. There has been bitterness in the relations between the two countries since the Galwan Valley incident. Many Chinese companies have also been shown the way out of the country. Not only this, Chinese companies are also banned from investing in India. But now the government can approve the investment of some companies in India. An ET report, quoting sources with knowledge of this, said that the government is considering options to approve the investment of some Chinese companies. These are mainly companies working in the solar modules and critical minerals sector.Chinese companies have good technologyAccording to the news, the issue of investment by Chinese companies for solar modules and critical minerals sector requiring high technology is on the table in the Ministry of Commerce and Industry. Talks are going on to exempt some Chinese companies working in this sector from the rules of restriction on investment, although these talks are still private and no final decision has been taken on this issue yet.Critical minerals also include batteries made from lithium. The government has also reduced customs duty on batteries and solar modules in the budget, which is in accordance with the country's needs to promote energy conservation, energy transformation and electronics manufacturing. The government has a big focus on both solar and EV.Need to attract more investmentNot only this, it has been clearly stated in the government's Economic Survey 2023-24 that the country needs to attract more investment. That is why the government is also considering approving the investment of Chinese companies. A Reuters report also discusses the possibility of the government showing kindness to China. In the budget too, the government has made provisions like abolishing angel tax and reducing the corporate tax of foreign companies from 40 to 35 percent.