Amidst growing tension between India and China, the finance ministry on Friday proposed putting restrictions on foreign investment in pension funds from any of India’s bordering countries.
Foreign investment in pension funds regulated by the Pension Fund Regulatory and Development Authority (PFRDA) is capped at 49 percent with automatic route.
According to a draft notification circulated for comments, “A government approval would be required for the investing entity or individual from any of the bordering countries including China. The relevant provisions of FDI policy issued from time to time would apply in all such cases.”
Any foreign investment from these countries will be subject to approval from the government.
The restriction should be applicable from the date of notification by the Government of India.
The development comes at a time when Indian and Chinese armies are engaged in a standoff in Pangong Tso, Galwan Valley, Demchok and Daulat Beg Oldie in eastern Ladakh.
The violent clash stirred anti-China sentiments in the country, with protesters and traders’ bodies calling to boycott Chinese products.
The changes have been proposed in accordance with Department for Promotion of Industry and Internal Trade (DPIIT) guidelines issued in April.
Currently, government permission is mandatory only for investments coming from Bangladesh and Pakistan.
The Confederation of All India Traders (CAIT), an apex body representing seven crore traders, on Thursday condemned the escalating tensions between the two nations in the border and launched a flagship campaign ‘Bharatiya Samaan, Hamara Abhimaan’ to boycott Chinese goods.
The CAIT issued a list of 500 items to be boycotted from categories like FMCG products, consumer durables, toys, furnishing fabrics, textiles, builder hardware, footwear, apparel, and kitchen items, among others.
CAIT even issued an open letter to Indian celebrities to stop endorsing Chinese products as a mark of respect for Indian soldiers. The letter particularly requested celebrities from the film fraternity – Aamir Khan and Sara Ali Khan for endorsing Vivo; and Deepika Padukone, Siddharth Malhotra, Katrina Kaif, and Ranbir Kapoor for Oppo. It also requested Ranveer Singh for Xiaomi; and Salman Khan, Ayushman Khurana, and Shraddha Kapoor for Realme. The letter also stated the names of rapper Badshah and cricketer Virat Kohli.
(Disclaimer: Additional background information has been added to this PTI copy for context)
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