India’s China FDI Gamble

The Diplomat

In the midst of a global pandemic and looming fears of considerable growth deceleration, Narendra Modi’s government took a major decision to ban foreign direct investment (FDI) under the automatic route from countries having land borders with India. The amended FDI policy is aimed at preventing “opportunistic takeovers” of Indian companies amid the COVID-19 pandemic. Analysts worry that, in the post-COVID period, Chinese companies will buy up distressed assets for a throwaway price.