Chinese Embassy in India has criticised India's decision to restrict foreign direct investments from its neighbouring countries by making government approval mandatory. The Reserve Bank of India (RBI) announced a sharp 66 per cent increase in the Ways & Means Advances (WMA) limits of the central government. At the start of the year, Indian Steel Association (ISA) had projected demand growth of 5.1 per cent for the industry but the revision was necessitated due to the extent of the coronavirus pandemic that has forced India to go into a total lockdown for 40 days. Read for more top stories from the world of business and economy:
China wants India to revise relevant "discriminatory practices" and foster an "open, fair and equitable" business environment; calls India's move violation of WTO's principle of non-discrimination.
These companies see India as an alternate manufacturing hub and have taken up their proposals across various levels of the government, including central government departments, Indian missions abroad and state industry departments.
The central bank last week announced a 60 per cent increase in the WMA limit of state governments over and above the level as on March 31.
According to the 14th Finance Commission, the fiscal deficit targets of the states will be anchored to an annual limit of 3 per cent of Gross State Domestic Product (GSDP).
ISA had projected demand growth of 5.1 per cent for the industry but the revision was necessitated due to the extent of the pandemic that has forced India to go into a total lockdown for 40 days.