FDI simply means that Foreign Direct Investment which implies that investing from home country to host countries in terms of physical assets such as investment in plant and machinery, opening new branches in foreign countries, etc. It can be of two types i.e., Vertical and Horizontal.

In the recent scenario, on 20th April 2020, India has revised the FDI policy. In the new policy, it is stated that India is now imposing the restriction on the imports as now the imports need prior approval of the Indian Government. Earlier the FDI restriction was only limited to two countries viz. Pakistan and Bangladesh. This was done just to safeguard that there are no antagonistic overthrows due to deteriorating market and economic conditions due to the novel coronavirus or pandemic COVID-19.

China’s Protest:

On this move by our Indian Government, the Embassy of China at New Delhi passed a statement regarding this move. The statement is, “The development of the Indian industries including mobile phones, household electrical appliances, auto and infra sector which have created jobs in India is due to the Chinese investments” (retrieved from financial express).

By many experts, the answer to this question/statement given accurately and precisely as one the expert says that we are not the first one to this restriction due to the pandemic coronavirus, many other European countries also have done this so far due to the pandemic disease.

It is also said that, even though the market emergency in the wake of the pandemic has come as a stun to the financial specialists, yet most likely, it is invited advancement for rich moguls. They can stop their flooding money in a discouraging market, which will undoubtedly bounce back at some point or another. The Chinese ventures are doing precisely the equivalent and are intending to purchase stocks at alluring costs.

There is a report that almost 26 billion US dollars acquisition plans by the Chinese companies in India, but now we have a change regarding this, which is a good move.

Conclusion:

In the recent scenario, on 20th April 2020, India has revised the FDI policy. In the new policy, it is stated that India is now imposing the restriction on the imports as now the imports need prior approval of the Indian Government. Earlier the FDI restriction was only limited to two countries viz. Pakistan and Bangladesh. On this move by our Indian Government, the Embassy of China at New Delhi passed a statement regarding this move, the statement you can read from above. In conclusion, during this pandemic scenario, a change regarding this is a good move.