Top Reasons Why India Rejected $1 Billion Investment

India has rejected a $1 billion manufacturing proposal from Chinese automaker and battery maker BYD. The proposal aimed to compete with Tesla in India's electric vehicle (EV) market and launch a mass-market EV in 2023. BYD had partnered with Megha Engineering and Infrastructures Ltd (MEIL) for the project, which was sent to the Department for Promotion of Industry and Internal Trade (DPIIT). Security concerns were raised over Chinese investments, and the Directorate of Revenue Intelligence (DRI) alleged that BYD hadn't paid tax worth $9 billion. The Modi-led government made foreign direct investment (FDI) approval mandatory for such investments in 2020. Despite tensions, India remains open to Chinese investment. India is already investigating Chinese companies, and its goal is to achieve 30% EV sales by 2030. As the world's third-largest car market, India's EV sector faces critical decisions regarding international partnerships.