India may permit Chinese companies to partner with domestic businesses: Report

According to the report, the government and business are attempting to identify 50 to 60 Indian companies that would be interested in forming joint ventures with Chinese businesses.

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The Economic Times daily, reported claimed on Wednesday, citing officials that the Indian government is open to allowing Chinese corporations to enter the nation’s high-tech electronics sector if they build up production plants in partnerships with local enterprises.

According to the newspaper, a joint venture (JV) request could be approved if the Indian partner owns a majority stake and controls the board, albeit it stated that no restrictions have been set in stone.

According to the article, which cited an official who requested anonymity, the government is working with the business community to identify 50 to 60 Indian companies that would be interested in forming joint ventures with firms from South Korea, Taiwan, and Vietnam in addition to Chinese firms.

A Reuters request for comment was not immediately answered by an Indian government spokeswoman.

As political tensions increased following a border incident in 2020, Chinese businesses have found it difficult to conduct business in India.