‘No rethinking to support Chinese investment’: Piyush Goyal after EcoSurvey pitches for FDI from China 

Commerce and Industry Minister Piyush Goyal said that the Economic Survey 2024’s pitch to seek foreign direct investments (FDI) from China was just that – a pitch. He said that the Economic Survey is not at all binding and there has been no rethinking about supporting Chinese FDI.

"There is no rethinking at present to support Chinese investments in the country," said Goyal, adding that the report always speaks about new ideas and gives out their own thinking. The Economic Survey is not at all binding on the government and there is no thinking on supporting Chinese investments in the country, he told reporters.

The Economic Survey 2024, authored by Chief Economic Adviser V Anantha Nageswaran and co, outlined two paths for India to become a global manufacturing hub – increasing imports or attracting more foreign direct investment (FDI) from China. Keeping in mind India’s substantial trade deficit with China, Nageswaran deemed the second more beneficial. Encouraging Chinese investments would help reduce this deficit and foster domestic technical expertise. 

As the US and Europe shift their sourcing away from China, the Economic Survey 2024 suggests it is more effective for Chinese companies to invest in India and export products to these markets rather than importing from China. India can benefit from the 'China plus one strategy', it said.

Ties between India and China deteriorated significantly after the border clash in the Galwan Valley in June 2020. The Indian and Chinese militaries have been in a stand-off since May 2020, and a full resolution of the border issue has not yet been achieved, though both sides have disengaged from several friction points. India has maintained that its relations with China cannot be normal unless there is peace in the border areas. 

Following these tensions, India banned over 200 Chinese mobile apps, including TikTok, WeChat, and Alibaba's UC browser. The country also rejected a major investment proposal from electric vehicle maker BYD. However, earlier this year, the Competition Commission of India cleared JSW Group's proposed acquisition of a 38 per cent stake in MG Motor India Pvt Ltd.

China is India's largest trading partner with two-way commerce reaching USD 118.4 billion in 2023-24, surpassing the US. India's exports to China increased by 8.7 per cent to USD 16.67 billion in the last fiscal year. Imports from China rose by 3.24 per cent to USD 101.7 billion. The trade deficit widened to USD 85 billion from USD 83.2 billion in 2022-23.