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Time of India

‘Time has come': Ex-Niti Aayog VC Rajiv Kumar urges lifting curbs on Chinese investments; flags US tariff impact

AI image Former Niti Aayog Vice Chairman Rajiv Kumar has called for the removal of restrictions on Chinese investments in India, arguing that such a step could boost domestic manufacturing and create jobs. In an interview with PTI Videos, Kumar said, 'I think the time has come to seriously consider permitting Chinese investments into India.' Kumar suggested scrapping Press Note 3 of 2020, which mandates prior government approval for foreign investments from countries sharing land borders with India, including China, Pakistan, Nepal, and others. 'The only neighbouring country which matters is, as you know, China,' he said, adding that local manufacturing by Chinese firms would be preferable to imports, which 'do not create employment in India' or backward linkages. The push for policy change comes amid efforts by New Delhi and Beijing to repair ties damaged by the June 2020 border clashes. According to economic think tank GTRI, China was India's largest trading partner in 2023-24, with bilateral trade worth $118.4 billion. Prime Minister Narendra Modi is expected to visit Tianjin for the Shanghai Cooperation Organisation summit on August 31–September 1, after a trip to Japan later this month. Kumar also addressed US President Donald Trump's announcement of an additional 25% tariff on all Indian imports from August 27, doubling the duty to 50%. He estimated, citing economists, that India's GDP could take a 0.25–0.5% hit, but stressed diversification of exports and maintaining strategic ties with Russia despite the penalties over Russian oil purchases. India, the largest buyer of Russian crude, imported 1.6 million barrels per day in July but has not booked shipments for August and September as discounts narrowed to USD 2 per barrel. 'When push comes to shove, then you will have to replace it with oil imports from other countries,' Kumar noted. On US agricultural market access, he said Indian dairy cooperatives could compete strongly, provided imports are non-GMO. 'I am not so averse to permitting some access… as long as it is not genetically modified,' he added. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .