Our Stand On Chinese Investment Policy Has Not Changed: Commerce Minister Piyush Goyal

Commerce Minister Piyush Goyal said the views in the Economic Survey, presented by the chief economic advisor, are independent and do not reflect the government’s position

Commerce Minister Piyush Goyal reaffirmed the government's stance on Chinese investment, saying that there has been no change in policy despite differing views expressed in the Economic Survey. During a session in the Lok Sabha, Goyal addressed supplementary questions and said that the government meticulously scrutinises Chinese investments. "Our stand in this regard has not changed," Goyal asserted.

Congress MP Gaurav Gogoi raised concerns about India's dependence on China, referencing the Economic Survey, which appeared to support foreign direct investment (FDI) from the neighbouring country. Goyal responded by criticising the previous United Progressive Alliance (UPA) government, accusing it of increasing dependence on China.

"Under the Congress, imports increased from $4 billion to $40-45 billion, more than tenfold. In our term, the increase is only 2-2.5 times. We took steps to make India self-reliant," Goyal stated. He further alleged that during the UPA’s rule, the trade deficit with China grew thirtyfold, questioning the UPA’s memorandum of understanding with China.

Goyal underscored that the BJP-led National Democratic Alliance (NDA) has effectively managed Chinese investments. He clarified that the views in the Economic Survey, presented by the chief economic advisor, are independent and do not reflect the government’s position.

"The investment that comes from China is checked, and wherever it is deemed inappropriate, it is stopped. Our policy remains the same, the chief economic advisor gave advice," he added.

The pre-budget Economic Survey advocated for FDI from Beijing to enhance local manufacturing and capitalise on the export market. It argued that as the US and Europe shift their sourcing away from China, it would be more effective for Chinese companies to invest in India and export products to these markets, rather than India importing from China.

India, according to the survey, faces two choices to benefit from the "China-plus-one strategy"— either integrate into China's supply chain or promote FDI from China.