NEW DELHI: Union commerce and industry minister Piyush Goyal on Friday said that a review of checks on Chinese foreign direct investment (FDI) can be considered if the situation so demands.
Speaking at The Economic Times World Leaders Forum, Goyal explained that Press Note 3, which ended automatic FDI approvals from countries sharing land borders with India, was issued to ensure Indian ownership in strategic areas amid falling valuations during the Covid crisis.
"It does not ban FDI from anywhere; we only take a cautious approach and there is pre-approval. We have given approvals to many companies... wherever we find that the industry, technology or supply in question aligns with vision of India, we have been regularly giving approvals. Same process will continue. When times change, situations change, decisions can be made to suit the times," he said, while responding to a question on a possible review of norms after the recent easing of visa and flight curbs with China.
He, however, insisted that the shift should not be linked to recent tensions with the US.
The minister also said the govt is looking to create more domestic demand for sectors hit by US tariffs, including through GST cuts in labour-intensive industries such as food processing and textiles.
Asked about relief for exporters impacted by US tariffs, Goyal said he had spoken to some players to pick up stock, while ministries were working on arrangements to boost trade. Stressing that US remained an important partner, he said: "Among many works in hand, it is one issue that we're addressing with an open mind, positive outlook and the confidence that India-US relationship is very consequential, very important for both countries. I have been engaged with industry in India, I have been engaged with companies from US working in India. Everybody believes that it is an important relationship." He added that businesses were also exploring alternatives and had supported the govt's stand.
Goyal further pointed to several trade agreements that have been concluded, noting that like Australia, UK and EFTA nations, European Union too had recognised India's sensitivities in certain sectors. He said there had been good progress on proposed free trade agreement with the EU, while assuring that India's interests would always be safeguarded.
"Geopolitical considerations, or wanting to look good, will never drive India's trade decisions. Trade will stand on its own legs, geopolitics stands on its own legs, we don't hyphenate the two. Our effort is to build good relations across the world; we are multilateral in every dimension. But when it comes to opening India's market and expanding India's trade, our stakeholders, their views and their best interests are paramount," he stressed.
Speaking at The Economic Times World Leaders Forum, Goyal explained that Press Note 3, which ended automatic FDI approvals from countries sharing land borders with India, was issued to ensure Indian ownership in strategic areas amid falling valuations during the Covid crisis.
"It does not ban FDI from anywhere; we only take a cautious approach and there is pre-approval. We have given approvals to many companies... wherever we find that the industry, technology or supply in question aligns with vision of India, we have been regularly giving approvals. Same process will continue. When times change, situations change, decisions can be made to suit the times," he said, while responding to a question on a possible review of norms after the recent easing of visa and flight curbs with China.
He, however, insisted that the shift should not be linked to recent tensions with the US.
The minister also said the govt is looking to create more domestic demand for sectors hit by US tariffs, including through GST cuts in labour-intensive industries such as food processing and textiles.
Asked about relief for exporters impacted by US tariffs, Goyal said he had spoken to some players to pick up stock, while ministries were working on arrangements to boost trade. Stressing that US remained an important partner, he said: "Among many works in hand, it is one issue that we're addressing with an open mind, positive outlook and the confidence that India-US relationship is very consequential, very important for both countries. I have been engaged with industry in India, I have been engaged with companies from US working in India. Everybody believes that it is an important relationship." He added that businesses were also exploring alternatives and had supported the govt's stand.
Goyal further pointed to several trade agreements that have been concluded, noting that like Australia, UK and EFTA nations, European Union too had recognised India's sensitivities in certain sectors. He said there had been good progress on proposed free trade agreement with the EU, while assuring that India's interests would always be safeguarded.
"Geopolitical considerations, or wanting to look good, will never drive India's trade decisions. Trade will stand on its own legs, geopolitics stands on its own legs, we don't hyphenate the two. Our effort is to build good relations across the world; we are multilateral in every dimension. But when it comes to opening India's market and expanding India's trade, our stakeholders, their views and their best interests are paramount," he stressed.
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