Higher Regulatory oversight, but no blanket ban on FDI from China

In a move that is widely considered a hedge against Chinese takeover of domestic firms that are struggling because of the COVID-19 economic downturn, the finance ministry, last week, notified changes in FDI (Foreign Direct Investment) rules which mandate "prior approval" from the Centre for foreign investments from countries "that share border with India". In the latest episode of Mint Insight, we speak with Amit Bhandari, Fellow, Gateway House who authored a report on Chinese investments in India and Kartick Maheshwari, Partner, Khaitan & Co. to decode the implications.