Goyal rules out rethink on Chinese investment norms

India is not rethinking the issue of easing norms for Chinese investment as pitched by the Economic Survey, commerce and industry minister Piyush Goyal said Tuesday. He also said New Delhi will consider the European Union's suggestion of devising its own carbon tax mechanism in response to the bloc's proposed carbon border adjustment mechanism (CBAM).

The survey has made a strong case for attracting investments from China, stating that it can help increase India's global supply chain participation, boost manufacturing and push exports. "There is no rethinking at present to support Chinese investments," Goyal told reporters, adding that in the survey, the chief economic adviser talks of new ideas and their own thinking, which are "not at all binding" on the government.


While the survey pitched for Chinese investments, it also cautioned about trade re-routing and economic coercion where Beijing has blocked India's access to certain solar equipment.

Goyal's statement assumes significance amid debate on easing norms for investment from China as well visa norms by local industry. In 2020, India made prior government approval mandatory for FDI from countries that share a land border with it.

EU CBAM

Goyal also said the EU has suggested that India devise its own carbon tax mechanism and the ministry would consider the suggestion. "They (EU) are very keen to pursue that and have offered that India could instead of paying CBAM tax, devise its own mechanism. We will consider their suggestion and come up with whatever is good for the industry and the people."

As per reports, an EU delegation has suggested to New Delhi that India could implement its own carbon tax and cut carbon emissions.