India finance minister Nirmala Sitharaman. — Reuters
NEW DELHI: India will retain curbs on investment from nations with which it shares a land border, the Finance Minister says days after the South Asian country struck a pact with China on patrolling their disputed Himalayan frontier.
The deal paves the way to end a four-year military stand-off and improve political and business ties between the Asian giants strained since a deadly border clash in 2020 that slowed exchanges of capital, technology and talent.
“I cannot blindly receive foreign direct investment because I want money for investment, forgetful or unmindful of where it is coming from,” Nirmala Sitharaman told a gathering at the Wharton business school in the United States on Tuesday.
The dispute led to stagnation in ties between the world’s two most populous countries at a time of exploding demand for electric vehicles, semiconductors and artificial intelligence, key growth areas offering opportunities for greater co-operation.
In 2020, India stepped up vetting and security clearances in its scrutiny of investments from companies based in neighbouring countries, but did not specifically mention any nations. — Reuters
