New Delhi rejects proposal for $1B manufacturing facility over ‘security concerns’ related to Chinese investments in country
India has declined a $1 billion investment offer from Chinese electric car manufacturer giant BYD Motors, local media reported on Saturday.
The Mumbai-based daily Economic Times reported that New Delhi rejected BYD Motors’ proposal to establish a $1 billion manufacturing facility in the country,citing “security concerns associated with Chinese investments in the country.”
A major car maker, BYD Motors has introduced two electric vehicle models into the Indian market.
The decision comes after a change in Indian investment regulations in April 2020, requiring all foreign investments from neighboring nations to undergo an approval process led by the Interior Ministry.
China and India maintain a bilateral trade volume of over $135 billion annually. However, the two Asian neighbors have been embroiled in a border dispute since May 2020 in the Ladakh area of the disputed Jammu and Kashmir region.