Updated 14:41 IST, July 30th 2024
No rethinking on supporting FDI from China; says Piyush Goyal
In the Economic Survey CEA suggested that focusing on increasing FDI from China is a promising choice for the government to boost the country’s exports.

Chinese FDI in India: Commerce Minister Piyush Goyal on July 30 cleared the government’s stance on Foreign Direct Investment from China saying that the government will continue to scrutinise any form of investments from Bejing. Goyal reacted to the suggestion made to the government in the pre-budget Economic Survey by Chief Economic Adviser Anantha Nageswaran.
"It (Economic Survey) is the Chief Economic Adviser's report, it is a report that always gives out new ideas. It is not binding on the government. And there is no rethinking on supporting FDI from China," said Goyal.
In the Economic Survey CEA suggested that focusing on increasing FDI from China is a promising choice for the government to boost the country’s exports to the US and other key markets.
The Economic Survey stated, “India faces two choices to benefit from China plus one strategy: It can integrate into China's supply chain or promote FDI from China. Among these choices, focusing on FDI from China seems more promising for boosting India's exports to the US, similar to how East Asian economies did in the past. Moreover, choosing FDI to benefit from China plus one approach appears more advantageous than relying on trade. "
Government data indicates that while investment from China has not been robust, India's dependence on Chinese goods has been increasing steadily for nearly two decades.
In the January-March quarter of 2024, foreign direct investment (FDI) equity inflow from China amounted to $1.7 million, representing a mere 0.01 per cent of the total inflows. Cumulatively, Chinese FDI equity inflows between January 2000 and March 2024 have totalled $2.5 million.
Goyal in his address also talked about developing a similar mechanism to the Carbon Border Adjustment Mechanism (CBAM) of the European Union. The Carbon Border Adjustment Mechanism is a carbon tariff on carbon-intensive products, such as steel, cement and some electricity, imported to the European Union. Goyal said that the government will consider EU’s suggestion and come out with ‘whatever is good for Indian industry.’
“They (EU) are keen to pursue that (carbon border adjustment mechanism, or CBAM) and have offered – India could instead of paying CBAM taxes to the EU, (can) devise its own mechanism. We will consider their suggestion, and come out with whatever is good for Indian industry and the people of India,” Goyal told reporters.
Published 14:41 IST, July 30th 2024