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India may expedite funding from China post new FDI rule: Report


The government is planning to fast track investment proposals from border sharing countries, especially China, after the notification on the new FDI rules raised worries over slowing investments into Indian companies.

As the new FDI regulation is going to affect several companies, funds, and individual investors from China which are planning to invest in Indian companies, the government is mulling over speeding up the approval process.

A Reuters report said that the Indian government will try to give assent to any investment proposal in a non-sensitive sector within 15 days when the stake being bought is not significant.

As per the latest rule, local startups that are in talks with Chineses funds and strategic investors will now have to take permission from the respective nodal ministry in India. Under the revised FDI policy, such companies will have to wait for up to 6 months or more to accept capital from China-based investors.

Entrackr has reached out to the Commerce and Industry ministry for their comment. We will update the post as and when it responds.

The easing of the investment process would be a positive step from the Indian government. The Chinese Embassy in New Delhi had earlier reacted to the new FDI rules and said that the rules are discriminatory and against the spirit of free and fair trade.

As far as the Indian startup economy is concerned, Chinese investors such as Alibaba, Tencent, Shunwei, Steadview Capital, Fosun RZ Capital are some of the big names which have invested in it and have helped turn a few into unicorns. 

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