Lok Sabha Question No. 207 (UNSTARRED), answered on 2020-09-14
Subject: Investment by Chinese Companies
Ministry: FINANCE
Asked by: S. Jagathrakshakan, A.K.P. Chinraj

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 207

TO BE ANSWERED ON MONDAY, SEPTEMBER 14, 2020/Bhadrapada 23, 1942 (Saka)

INVESTMENT BY CHINESE COMPANIES

207. SHRI S. JAGATHRAKSHAKAN:

SHRI A.K.P. CHINRAJ:

## Will the Minister of FINANCE be pleased to State:

- a) The total number of Chinese firms/companies which invested in various sectors of India for the last three years;
- b) The  total  number  of  Indian  firms/companies  which  invested  or  are  indulged  in  various business activities/sectors of China during the said period;
- c) Whether the Government has any proposal to not accord any permission to any Chinese firms to invest in India; and
- d) If so, the details thereof?

## ANSWER

## MINISTER OF STATE (FINANCE)

(SHRI ANURAG SINGH THAKUR)

- (a) & (b): The total FDI inflow from Chinese companies in India during the last three years are as under:

Amount in USD Million

| Year       |   2017-18 |   2018-19 |   2019-20 |
|------------|-----------|-----------|-----------|
| FDI Inflow |    350.22 |       229 |    163.77 |

| Year           |   2017 |   2018 |   2019 |   2020 |
|----------------|--------|--------|--------|--------|
| Actual Outflow |  49.19 |  12.61 |  27.57 |  20.63 |

A Statement  indicating  FDI  Equity  inflow  sector  wise  from  China  during  the  last  5  years  is  at Annexure-I.

(c)  &  d): No.    To  curb  opportunistic  takeovers/acquisitions  of  Indian  Companies  due  to  the current  Covid-19  pandemic,  Government  issued  a  Press  note  3,  2020  relevant  portion  of  which reads as follows:

Para 3.1.1: 3.1.1(a):  A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited. However, an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen  of  any  such  country,  can  invest  only  under  the  Government  route.  Further,  a  citizen  of Pakistan  or  an  entity  incorporated  in  Pakistan  can  invest,  only  under  the  Government  route,  in sectors/activities  other  than  defence,  space,  atomic  energy  and  sectors/activities  prohibited  for foreign investment.

3.1.1(b):   In the event of the transfer of ownership of any existing or future FDI in an entity in India, directly or indirectly, resulting in the beneficial ownership falling within the restriction/purview of the para 3.1.1(a), such subsequent change in beneficial ownership will also require Government approval.

******

## Statement referred to in reply to parts (a) & (b) of LSUSQ No. 207 for 14.09.2020

FDI Equity inflow sector wise from China during the last 5 years is as under:

## STATEMENT ON FINANCIAL YEAR WISE FDI EQUITY INFLOWS FROM APRIL 2015 TO MARCH 2020 Country China

| Sl No   | Sector                                            | 2015-16 Apr-Mar    | 2016-17 Apr- Mar   | 2017-18 Apr-Mar    | 2018-19 Apr-Mar    | 2019-20 Apr- Mar   | Total   |
|---------|---------------------------------------------------|--------------------|--------------------|--------------------|--------------------|--------------------|---------|
|         |                                                   | FDI in US$ million | FDI in US$ million | FDI in US$ million | FDI in US$ million | FDI in US$ million |         |
| 1       | METALLURGICAL INDUSTRIES                          | 1.20               | 0.65               | 3.09               | 16.75              | 0.06               | 21.76   |
| 2       | MINING                                            | 0.00               | 0.00               | 0.27               | 0.08               | 0.06               | 0.41    |
| 3       | POWER                                             | 0.00               | 0.00               | 0.00               | 0.00               | 0.00               | 0.00    |
| 4       | NON-CONVENTIONAL ENERGY                           | 12.68              | 0.00               | 9.34               | 24.44              | 0.15               | 46.61   |
| 5       | PRIME MOVER (OTHER THAN ELECTRICAL GENERATORS)    | 5.49               | 0.00               | 0.00               | 0.00               | 0.00               | 5.49    |
| 6       | ELECTRICAL EQUIPMENTS                             | 56.94              | 19.74              | 51.90              | 18.18              | 30.07              | 176.82  |
| 7       | COMPUTER SOFTWARE &HARDWARE                       | 3.38               | 8.38               | 2.02               | 5.10               | 4.14               | 23.02   |
| 8       | ELECTRONICS                                       | 2.26               | 4.76               | 31.34              | 54.13              | 54.02              | 146.51  |
| 9       | TELECOMMUNICATIONS                                | 0.91               | 0.74               | 0.00               | 0.10               | 0.00               | 1.74    |
| 10      | INFORMATION &BROADCASTING (INCLUDING PRINT MEDIA) | 0.00               | 0.00               | 6.81               | 0.03               | 0.00               | 6.84    |
| 11      | AUTOMOBILE INDUSTRY                               | 327.69             | 116.18             | 20.45              | 25.29              | 10.08              | 499.68  |
| 12      | AIR TRANSPORT (INCLUDING AIR FREIGHT)             | 0.00               | 0.00               | 0.00               | 1.36               | 0.00               | 1.36    |
| 13      | SEA TRANSPORT                                     | 0.05               | 0.00               | 0.00               | 1.11               | 0.00               | 1.16    |
| 14      | RAILWAY RELATED COMPONENTS                        | 0.00               | 0.00               | 0.00               | 0.44               | 0.70               | 1.14    |
| 15      | INDUSTRIAL MACHINERY                              | 26.02              | 0.12               | 10.55              | 9.22               | 11.65              | 57.55   |
| 16      | MACHINE TOOLS                                     | 0.00               | 0.27               | 2.85               | 5.26               | 3.77               | 12.16   |
| 17      | AGRICULTURAL MACHINERY                            | 0.01               | 0.00               | 0.00               | 0.00               | 0.10               | 0.11    |
| 18      | EARTH-MOVING MACHINERY                            | 0.00               | 0.00               | 0.61               | 0.51               | 0.00               | 1.12    |
| 19      | MISCELLANEOUS MECHANICAL& ENGINEERING INDUSTRIES  | 0.34               | 0.90               | 0.18               | 0.00               | 0.29               | 1.71    |
| 20      | COMMERCIAL, OFFICE &HOUSEHOLD EQUIPMENTS          | 0.04               | 0.43               | 0.14               | 0.00               | 0.00               | 0.61    |
| 21      | MEDICAL AND SURGICAL APPLIANCES                   | 0.05               | 0.00               | 0.00               | 0.67               | 0.32               | 1.04    |

| 22   | SCIENTIFIC INSTRUMENTS                                                                                              |   0.00 |   0.00 |   0.00 |   0.00 |   1.06 | 1.06     |
|------|---------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|----------|
| 23   | CHEMICALS (OTHER THAN FERTILIZERS)                                                                                  |   4.16 |   2.63 |  22.4  |   1.16 |   0.67 | 31.02    |
| 24   | DRUGS &PHARMACEUTICALS                                                                                              |   0    |   0    |   0    |   1.31 |   0.8  | 2.12     |
| 25   | TEXTILES (INCLUDING DYED,PRINTED)                                                                                   |   2.09 |   0.39 |   0    |   0.69 |   6.59 | 9.76     |
| 26   | PAPER AND PULP (INCLUDING PAPER PRODUCTS)                                                                           |   0    |   0    |   1.07 |   0    |   0    | 1.07     |
| 27   | FOOD PROCESSING INDUSTRIES                                                                                          |   1.49 |   2.68 |   0.5  |   1.3  |   0.27 | 6.24     |
| 28   | SOAPS, COSMETICS &TOILET PREPARATIONS                                                                               |   0    |   0    |   0    |   0.15 |   0.1  | 0.24     |
| 29   | RUBBER GOODS                                                                                                        |   0.44 |   0    |   0    |   0.05 |   0    | 0.50     |
| 30   | LEATHER,LEATHER GOODS AND PICKERS                                                                                   |   0    |   1.05 |   0    |   0.02 |   0    | 1.07     |
| 31   | GLUE AND GELATIN                                                                                                    |   0    |   0    |   0    |   0.07 |   0.07 | 0.14     |
| 32   | GLASS                                                                                                               |   0    |   0    |   0    |   0    |   0.08 | 0.08     |
| 33   | CERAMICS                                                                                                            |   0    |   0    |   0.24 |   0    |   0    | 0.24     |
| 34   | CEMENT AND GYPSUM PRODUCTS                                                                                          |   0    |   0.19 |   0    |   0    |   0    | 0.19     |
| 35   | TIMBER PRODUCTS                                                                                                     |   0.13 |   0.14 |   0.31 |   0    |   0.15 | 0.74     |
| 36   | CONSULTANCY SERVICES                                                                                                |   0.18 |   0.34 |   0.11 |   0.88 |   0.61 | 2.12     |
| 37   | SERVICES SECTOR (Fin.,Banking,Insurance,Non Fin/Business,Outsourcing,R&D,Courier,Tech. Testing and Analysis, Other) |   0.5  |  92.2  |   8.58 |  24.65 |  14.21 | 140.15   |
| 38   | HOSPITAL &DIAGNOSTIC CENTRES                                                                                        |   0.32 |   0.3  |   0.07 |   0.14 |   0    | 0.84     |
| 39   | EDUCATION                                                                                                           |   0.09 |   0.01 |   0    |   0.21 |   0.07 | 0.38     |
| 40   | HOTEL &TOURISM                                                                                                      |   0.04 |   0.91 |  10.17 |   0.08 |   0    | 11.19    |
| 41   | TRADING                                                                                                             |   9.67 |  15.26 |  12.88 |  24.66 |  13.3  | 75.77    |
| 42   | RETAIL TRADING                                                                                                      |   0    |   0    |   0.08 |   2.47 |   5.44 | 7.99     |
| 43   | AGRICULTURE SERVICES                                                                                                |   0    |   1.41 |   0    |   0.97 |   0    | 2.38     |
| 44   | DIAMOND,GOLD ORNAMENTS                                                                                              |   0    |   0.99 |   0.51 |   0    |   0    | 1.50     |
| 45   | PRINTING OF BOOKS (INCLUDING LITHO PRINTING INDUSTRY)                                                               |   0.57 |   0    | 149.24 |   0.46 |   1.49 | 151.75   |
| 46   | CONSTRUCTION (INFRASTRUCTURE) ACTIVITIES                                                                            |   3.34 |   4.19 |   1.07 |   0.7  |   2.77 | 12.06    |
| 47   | CONSTRUCTION DEVELOPMENT: Townships, housing, built-up infrastructure and construction-development projects         |   0    |   0.01 |   0.2  |   0    |   0    | 0.21     |
| 48   | MISCELLANEOUS INDUSTRIES                                                                                            |   1.33 |   2.38 |   3.21 |   6.38 |   0.69 | 13.99    |
|      | Grand Total                                                                                                         | 461.4  | 277.25 | 350.22 | 229.01 | 163.78 | 1,481.65 |