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A less direct approach: Amended FDI regulation is problematic under the WTO law

Prabhash Ranjan & Jay Manoj Sanklecha, Financial Express

Photo by rupixen.com on Unsplash
Photo by rupixen.com on Unsplash

India recently amended its FDI policy by subjecting investments from countries with which it shares a land border to screening under the approval route and making them ineligible under the automatic route. The policy doesn’t name China, but it is clear that this aims to prevent opportunistic Chinese investors from acquiring, on the cheap, Indian companies weakened by the COVID crisis. However, China has objected to these changes, arguing that it violates the WTO principle of non-discrimination.



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