India's new FDI policy against free trade, discriminatory: China

India’s new policy on allowing investment from foreign countries go against international rules on free trade and investment, said China on Monday.
India on Saturday mandated that investments from neighbouring countries would now require government approval, effectively closing the “automatic route” used by firms and individuals to set up business in the country.
India’s move was attributed to the rising possibility of “opportunistic takeovers” of its companies, as the coronavirus pandemic wreaks havoc on the economy.
"The additional barriers set by Indian side for investors from specific countries violate WTO's principl e of non-discrimination, and go against the general trend of liberalisation and facilitation of trade and investment," Chinese embassy spokesperson Ji Rong said in a statement in Delhi.
There were calls to curb Chinese investments after the People’s Bank of China (PBoC) increased its shareholding in Housing Development Finance Corporation (HDFC) amid a sharp correction in the stock of India’s largest mortgage lender.
VDO.AI

The new rules will also apply to all the existing and planned investments by foreign firms in Indian businesses, said the Department for Promotion of Industry and Internal Trade (DPIIT). Several Indian start-ups have existing investment from Chinese investors. For instance, Flipkart has an investment from Tencent (about 5 per cent) and Alibaba owns a significant stake in Paytm.

Apple to start online sales in India after govt eases local sourcing rules

Current Affairs

Apple Inc is poised to start online sales of its devices in India within months, a person familiar with the matter said, benefiting from new rules making the world’s fastest-growing smartphone market more attractive to foreign brands.
On Wednesday, India eased rules that forced companies such as Apple to source 30% of their production locally -- a requirement the iPhone maker has been lobbying against for years -- to include exports as part of the requirement.
That rule posed a problem for electronics brands because most of its devices and components are manufactured in China. The government also allowed so-called single brand retailers to set up online stores before physical shops.
With escalating trade tensions damaging ties between the US and China, New Delhi’s latest investment rules could provide a boost to Apple, allowing it to grow sales in the country and possibly help it reduce its high dependency on China by building out an alternative supply chain in India.
The Cupertino, Calif-based device and services company will begin selling its iPhone, iPads and Apple Mac computers online in the coming months. It’s also firming up the Mumbai location of its first company-owned brick & mortar store in India -- likely to open next year -- the person said, asking not to be identified as the details are confidential. Selling online will be a big step forward for Apple in a country where counterfeit products abound in online platforms increasing buyers’ distrust.
Apple didn’t immediately respond to an email seeking comments.

 Some of the phone maker’s older devices are assembled by Taiwanese contractor Wistron Corp...Read More